Stock markets in the Gulf were mixed on Tuesday amid falling oil prices, while further signs of a sharp U.S. factory slowdown, opens new tab boosted hopes of interest rate cuts from the Federal Reserve this year.
Oil prices, a catalyst for the Gulf's financial markets, declined by 1.4%, with Brent trading at $77.25 a barrel by 1336 GMT.
Saudi Arabia's benchmark stock index (.TASI), opens new tab dropped 1.7% after two straight sessions of gains with all of its constituents posting loss.
ACWA Power(2082.SE), opens new tab fell 2.5% and Saudi Aramco (2222.SE), opens new tab slipped 2.4% to 28.2 riyals per share, its lowest level in more than one year.
Saudi Arabia is offering investors about 1.545 billion Aramco shares, at 26.7 to 29 riyals.
Separately, growth in non-oil business activity in Saudi Arabia eased in May as new orders rose at the slowest pace in 25 months, a survey showed on Tuesday.
Dubai's benchmark index (.DFMGI), opens new tab eased 0.2% after three straight sessions of gains, dragged down by losses in real estate and industry sectors. The low-cost flyer Air Arabia (AIRA.DU), opens new tab slipped 4.1% and Emaar Properties (EMAR.DU), opens new tab slid 1.1%.
The Abu Dhabi benchmark index (.FTFADGI), opens new tab was little changed with conglomerate International Holding Co (IHC.AD), opens new tab shedding 0.4% and Abu Dhabi Islamic Bank (ADIB.AD), opens new tab sliding 1.5%, while ADNOC Drilling Co (ADNOCDRILL.AD), opens new tab climbed 3.5%.
The Qatari benchmark index (.QSI), opens new tab was up for a fourth consecutive session to end 0.6% higher, supported by a 3.3% gain in Qatar Navigation (QNNC.QA), opens new tab and a 2.2% increase in Qatar Gas Transport (QGTS.QA), opens new tab.
Meanwhile, state-owned energy giant QatarEnergy has entered into 10-year naphtha supply agreement with Japan's Idemitsu Kosan.
Markets are now pricing in a nearly 62% chance of the Fed cutting rates in September, up from about 53% before manufacturing data was released.
Most Gulf currencies are pegged to the dollar, and any U.S. monetary policy change is usually followed by Saudi Arabia, the United Arab Emirates and Qatar.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab was up 0.5%, snapping its six session losing-streak. Eastern Company (EAST.CA), opens new tab rose 3% and EFG Holding (HRHO.CA), opens new tab advanced 3.4%.
Egypt is targeting $30 billion in foreign direct investment in the 2024/25 fiscal year starting July 1, a budget statement showed on Monday.
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