Major stock markets in the Gulf were mixed in early trade on Tuesday ahead of a slew of data being released this week, including U.S. inflation, that will help sharpen views on the Federal Reserve's next moves and on oil demand concerns.
Markets are evenly split between a cut of 25 bps and 50 bps at the next meeting in September. Traders are pricing in a total of 100 bps of cuts this year. FEDWATCH
U.S. producer price data for July, due later in the day, could feed through to the core personal consumption (PCE) measure favoured by the Fed.
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.
Saudi Arabia's benchmark index (.TASI), opens new tab edged 0.1% higher, helped by a 2.5% increase in Dr Soliman Abdel Kader Fakeeh Hospital (4017.SE), opens new tab.
In Abu Dhabi, the index (.FTFADGI), opens new tab added 0.2%.
Dubai's main share index (.DFMGI), opens new tab dropped 0.5%, weighed down by a 1.6% decline in top lender Emirates NBD (ENBD.DU), opens new tab and a 1% decrease in sharia-compliant lender Dubai Islamic Bank (DISB.DU), opens new tab.
The Qatari benchmark (.QSI), opens new tab retreated 0.5%, hit by a 0.9% fall in petrochemical maker Industries Qatar (IQCD.QA), opens new tab after reporting a meagre increase in first-half net profit.
OPEC on Monday cut its forecast for global oil demand growth in 2024 citing softer expectations for China, a reduction that highlights the dilemma faced by the wider OPEC+ group in raising production from October.
This is the first cut in OPEC's 2024 forecast since it was made in July 2023, and comes after mounting signs that demand in China has lagged expectations due to slumping diesel consumption and as a crisis in the property sector hampers the economy.
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