Major Gulf bourses mixed ahead of Fed rate decision | Reuters

Major Gulf bourses mixed ahead of Fed rate decision | Reuters

Major stock markets in the Gulf were mixed in early trade on Tuesday as investors await this week's interest rate decision by the U.S. Federal Reserve.

Saudi Arabia's benchmark index (.TASI) added 0.2%, with Retal Urban Development Co (4322.SE) losing 0.8% and oil giant Saudi Aramco (2222.SE) declining 0.7%.

The Fed is predicted to raise rates by another 25 basis points Wednesday. The U.S. central bank has raised its policy rate by 475 basis points since March last year from the near-zero level to the current 4.75%-5.00% range.

Most Gulf Cooperation Council countries, including Saudi Arabia, the United Arab Emirates and Qatar, have their currencies pegged to the U.S. dollar and follow the Fed's policy moves closely, exposing the region to a direct impact from monetary tightening in the world's largest economy.

However, Saudi National Bank (SNB) (1180.SE) added 0.5%, after reporting a rise in first-quarter net profit.

In Abu Dhabi, the index (.FTFADGI) dropped 0.3%, on course to extend losses from the previous session.

Oil prices - a key catalyst for the Gulf's financial markets - fell in Asian trade, extending losses seen in the previous session, as weak economic data from China and expectations of a U.S. interest rate increase weigh on the market.

Dubai's main share index (.DFMGI) gained 0.5%, with utility firm Dubai Electricity and Water Authority (DEWAA.DU) advancing 1.6%.

The Qatari benchmark (.QSI) firmed 0.1%.