Mideast Stocks: Major Gulf markets in red; Dubai gains
Major stock markets in the Gulf fell in early trade on Tuesday ahead of the Federal Reserve's decision and rising tensions in the region, while the Dubai bourse rose on upbeat earnings.
The Federal Reserve's policy meeting and Chair Jerome Powell's commentary will likely be the main event of the week, while investors will also watch out for the U.S. employment report this week to help gauge the direction markets will take in the months to come.
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 dropped 0.5%, hit by a 10% fall in ADES Holding Co, and a 1.7% decline in ACWA Power Co.
On the Other hand, oil giant Saudi Aramco added 0.3%.
Oil prices - a catalyst for the Gulf's financial markets - gained following a more than 1% drop the previous session as escalating geopolitical tensions in major producing regions in the Middle East fuelled supply concerns.
Aramco, in an indication for the future demand outlook, said it had received a directive from the energy ministry to maintain its maximum sustainable capacity at 12 million barrels a day, and not to continue increasing it to 13 million barrels per day.
The Qatari benchmark dropped 0.6%, with Qatar Islamic Bank losing 1.3% and petrochemical maker Industries Qatar retreating 1.4%.
Washington vowed to take "all necessary actions" to defend its troops following a deadly drone attack in Jordan by Iran-backed militants, the first U.S. military deaths since the Israel-Gaza war began, putting markets on edge.
In Abu Dhabi, the index eased 0.2%.
Dubai's main share index added 0.3%, with sharia-compliant lender Dubai Islamic Bank gaining 1% ahead of its earnings announcement.
Elsewhere, MashreqBank surged as much as 13.2% to 190.25 dirhams, its highest since November 2008, after reporting a 150% jump in fourth-quarter net profit.
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