Major Gulf bourses drop in early trade on weaker oil prices | Reuters

Major Gulf bourses drop in early trade on weaker oil prices | Reuters

Major Stock markets in the Gulf fell in early trade on Tuesday, tracking declines in oil prices, with the U.S. Federal Reserve's hawkish tone weighing on investor sentiment.

Oil prices - a key catalyst for the Gulf's financial markets - declined, with Brent crude down 1.2% at $92.16 a barrel by 0850 GMT.

Dubai's benchmark stock index (.DFMGI) was down 0.7%, dragged by a 1.6% fall in Emaar Properties (EMAR.DU) and 0.8% loss in Dubai Electricity and Water Authority (DEWAA.DU).

The emirate's largest lender Emirates NBD (ENBD.DU) and Dubai Islamic Bank (DISB.DU) slipped 1.1% and 0.8%, respectively.

Abu Dhabi's benchmark stock index (.FTFADGI) fell 0.4%, weighed by a 0.4% loss in International Holding Company (IHC.AD) and 1.2% drop in Alpha Dhabi Holding (ALPHADHABI.AD).

Saudi Arabia's benchmark stock index (.TASI) was down 0.3% with Dr Sulaiman Al Habib Medical Services (4013.SE) losing 1.1% and Saudi Awwal Bank(1060.SE) sliding 1.9%.

Among the losers, oil major Saudi Aramco (2222.SE) shed 0.8% and Riyad Bank (1010.SE) lost 1.1%.

In Qatar, the benchmark (.QSI) was little changed, with losses in finance and utilities sectors capping gains in industry and energy sectors.

Industries Qatar (IQCD.QA) and Qatar Navigation (QNNC.QA) added 0.6% and 1.2% respectively, while Gulf's largest lender Qatar National Bank (QNBK.QA) slipped 0.4% and Doha Bank (DOBK.QA) dropped 1.4%.

The U.S. Federal Reserve's hawkish tone last week drove a message to markets that the interest rates will stay elevated for longer.

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