Gulf bourses mixed on weak oil, ahead of Fed rate decision | Reuters

Gulf bourses mixed on weak oil, ahead of Fed rate decision | Reuters

Stock markets in the Gulf ended mixed on Tuesday following a decline in oil prices as investors awaited the outcome of the U.S. central bank's meeting.

Crude prices - a catalyst for the Gulf's financial markets - hit their lowest levels since early June over concerns about Chinese demand and as the market shrugged off the risk of conflict escalating in the Middle East.

A raft of disappointing economic news out of China has shaken markets recently. China's manufacturing activity likely shrank for a third month in July, a Reuters poll showed on Monday.

Saudi Arabia's benchmark index (.TASI), opens new tab dropped 0.5%, with aluminium products manufacturer Al Taiseer Group (4143.SE), opens new tab declining 4% and oil giant Saudi Aramco (2222.SE), opens new tab retreating 0.9%.

Dubai's main share index (.DFMGI), opens new tab dropped 0.6%, weighed down by a 7.2% decline in Mashreqbank (MASB.DU), opens new tab and a 1.7% decrease in utility firm Dubai Electricity and Water Authority (DEWAA.DU), opens new tab.

However, Dubai Financial Market (DFM.DU), opens new tab, which operates the Dubai exchange, advanced 1.6% after reporting a higher quarterly net profit.

In Abu Dhabi, the index (.FTFADGI), opens new tab finished flat.

Markets are pricing almost no chance of a U.S. rate cut this week but, having fully priced a 25-basis-point reduction in September, expect dovish comments from Fed policymakers in its two-day meeting that ends on Wednesday. 

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

In Qatar, the index (.QSI), opens new tab dropped 0.2%, with telecom operator Ooredoo (ORDS.QA), opens new tab losing 1.1%, ahead of its earnings announcement.

Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab gained 0.5%, led by a 1.7% rise in Talaat Mostafa Group (TMGH.CA), opens new tab.

The International Monetary Fund said on Monday it had completed a review allowing Egypt to draw $820 million, saying efforts to restore macroeconomic stability had started to yield results but urging more progress on reining in state-owned enterprises.