Most Gulf markets retreat as spotlight turns to Fed chief | Reuters

Most Gulf markets retreat as spotlight turns to Fed chief | Reuters

Most stock markets in the Gulf ended lower on Wednesday as traders waited to see if U.S. Federal Reserve chief Jerome Powell will push back against rate-cut talk when he speaks later in the day.

Financial markets reckon the Fed is now done with its most aggressive monetary tightening cycle in decades, and investors have ramped up bets for rate cuts next year since Friday's key U.S. jobs data showed some signs of slowing.

Powell speaks on Wednesday and Thursday.

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) eased 0.2%, with Arabian Internet and Communications Services (7202.SE) losing 2.4% and Saudi National Bank (1180.SE) falling 1.4%.

The Saudi stock market continued to trade in a range over the last couple of days after recovering to a certain extent, said George Pavel, General Manager at Capex.com Middle East.

"The direction in oil markets as well as crude production cuts could continue to weigh on sentiment."

Oil prices - a key catalyst for the Gulf's financial markets - remained under pressure after sliding to their lowest in more than three months in the previous session, slipping further on concern over waning demand in the United States and China.

Dubai's main share index (.DFMGI) dropped 0.6%, weighed down by a 2% drop in blue-chip developer Emaar Properties (EMAR.DU).

The Dubai bourse recorded some price corrections after a series of gains, said Pavel.

"Traders could continue to monitor developments around monetary policy in the U.S. as well as geopolitical tensions in the region which could fuel some volatility."

At least 10,569 Palestinians including 4,324 children, have been killed and 26,457 wounded in Israeli strikes on Gaza since Oct. 7, the health ministry in Hamas-controlled Gaza said on Wednesday.

In Abu Dhabi, the index (.FTFADGI) closed 0.1% lower.

Outside the Gulf, Egypt's blue-chip index (.EGX30) advanced 2.5%, hitting its highest, with Commercial International Bank (COMI.CA) jumping 6.9%.

Egyptian inflation is expected to retreat in October from a record high of 38% in September as food price rises moderate, a Reuters poll showed on Tuesday, but Egypt's battle with inflation seems far from over, analysts say.