Major Gulf markets in red as investors assess Fed rate comments | Reuters

Major Gulf markets in red as investors assess Fed rate comments | Reuters

Major stock markets in the Gulf fell in early trade on Thursday as investors looked for fresh cues from the U.S. Federal Reserve on its interest rate stance.

A slew of Fed officials on Wednesday maintained a balanced tone on the central bank's next decision, but noted they would focus on more economic data and the impact of higher long-term bond yields.

The dollar has rebounded from last week's sharp sell-off on rising confidence that the U.S. central bank is done with rate hikes. There is less agreement on whether a rate cut is on the horizon with inflation still above the Fed's 2% target.

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

Saudi Arabia's benchmark index (.TASI) fell 0.6%, hit by a 1.4% fall in Etihad Atheeb Telecommunication Co (7040.SE) and a 1.5% decrease in Elm Co (7203.SE).

Separately, the Saudi wealth fund has raised its stake in Aston Martin (AML.L) to 20.5%, a regulatory filing showed on Wednesday, a week after the British luxury carmaker's quarterly results and outlook disappointed investors.

Dubai's main share index (.DFMGI) lost 0.4%, with Mashreq Bank (MASB.DU) dropping 4%.

In Abu Dhabi, the index (.FTFADGI) eased 0.2%.

The Fed, which last week kept the benchmark overnight interest rate in the current 5.25%-5.50% range, is due to meet again mid next month.

The Qatari benchmark (.QSI) slipped 0.5%, with Qatar Islamic Bank (QISB.QA) losing 1.2%.