Major Gulf markets mixed as Fed rate bets offset higher oil prices | Reuters

Major Gulf markets mixed as Fed rate bets offset higher oil prices | Reuters

Gulf stock markets put in a mixed performance early on Monday as a boost from higher oil prices was offset by concerns that the U.S. Federal Reserve could hike interest rates again.

Federal Reserve chair Jerome Powell, speaking on Friday, reiterated the central bank may have to raise rates further to cool still-too-high inflation but promised to move "carefully".

Monetary policy in the six-member Gulf Cooperation Council (GCC) is usually guided by Fed policy because most regional currencies are pegged to the U.S. dollar.

Oil prices ticked higher after China took steps to support its flagging economy, though investors remained worried about the pace of growth and any further U.S. rate hikes dampening demand, with Brent crude futures 0.3% higher at $84.73 a barrel by 0815 GMT.

Saudi Arabia's benchmark stock index (.TASI) inched up 0.1% to extend gains to a third session in a row with financials and material stocks leading a broader rise across most sectors. Saudi Arabia's second-largest lender by assets Al Rajhi Bank (1120.SE) was 0.3% higher and food retailer Savola Group (2050.SE) was up 1.8%.

Oil and gas driller ADES Holding, backed by Saudi Arabia's sovereign wealth fund announced plans to proceed with an initial public offering (IPO) on the Saudi Exchange.

Dubai's main share index (.DFMGI) gained 0.2%, supported by higher financial and property stocks as Emirates NBD Bank (ENBD.DU) rose nearly 0.6% and blue-chip developer Emaar Properties (EMAR.DU) added 0.8%.

In Abu Dhabi, the benchmark index (.FTFADGI) eased 0.2%, under pressure from a 0.7% drop in First Abu Dhabi Bank (FAB.AD), the United Arab Emirates' biggest lender, and a 1.3% fall in Emirates Telecommunications Group (EAND.AD).

Qatar's benchmark (.QSI) also fell 0.2% after two sessions of gains, with most of its individual stocks in negative territory. Telecoms operator Ooredoo (ORDS.QA) fell nearly 2% and Qatar National Bank (QNBK.QA), the Gulf's largest lender, was down 0.2%.