Mideast Stocks: Most stock markets ease on weak oil

Mideast Stocks: Most stock markets ease on weak oil

Most major stock markets in the Gulf eased in early trade on Tuesday following a decline in oil prices as investors awaited the outcome of the U.S. central bank's meeting.

Oil prices a catalyst for the Gulf's financial markets extended losses from the previous session amid concerns about demand in China, while the market shrugged off the risk of conflict escalating in the Middle East.

Saudi Arabia's benchmark index .TASI dropped 0.3%, with aluminium products manufacturer Al Taiseer Group 4143.SE losing 0.9% and Al Rajhi Bank 1120.SE down 0.4%.

Separately, the kingdom's Manara Minerals is looking at opportunities to invest in lithium production in Chile, mining minister Bandar Alkhorayaf said on Monday during a visit to the South American country.

Dubai's main share index .DFMGI lost 0.2%, hit by a 8.5% slide in Mashreqbank MASB.DU.

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

In Abu Dhabi, the index .FTFADGI edged 0.1% higher.

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.

The Qatari benchmark .QSI was down 0.2%, with telecom operator Ooredoo ORDS.QA retreating 1.2%.