Stock markets in the Gulf were mixed on Tuesday as oil prices held steady and investors anticipated fewer rate cuts by the U.S. Federal Reserve in the coming year.
Oil prices, a catalyst for the Gulf's financial markets, reversed the prior session's losses and gained 0.6% with Brent trading at $73.06 a barrel by 1250 GMT.
The Abu Dhabi benchmark index (.FTFADGI), opens new tab added 0.4%, extending its rally to a third session. First Abu Dhabi Bank (FAB.AD), opens new tab, was up 2.1% and Palms Sports (PALMS.AD), opens new tab climbed 3.9%.
Sports management company Palms said on Monday it has renewed a 206 million dirhams ($56.09 million) contract with UAE's ministry of education.
Dubai's benchmark stock index (.DFMGI), opens new tab rose 0.5%, lifted by gains in real estate, industry and finance stocks. Emaar Development (EMAARDEV.DU), opens new tab advanced 2.4% and Emirates NBD (ENBD.DU), opens new tab, Dubai's largest lender, gained 1%.
Shuaa Capital (SHUA.DU), opens new tab surged 5.3% to its highest in over three months. The investment bank's board approved on Friday a deal with a senior creditor to restructure 208 million dirhams ($56.64 million) in debt facilities.
Saudi Arabia's benchmark stock index (.TASI), opens new tab was down 0.3%, with most sectors in the red. Dr Sulaiman Al Habib Medical Services (4013.SE), opens new tab slipped 1.3% and oil giant Saudi Aramco (2222.SE), opens new tab lost 0.9%.
First Milling Co (2283.SE), opens new tab added 1.9% after its board approved the construction of a flour milling unit at an estimated cost of 123 million riyals ($32.75 million).
The Qatari benchmark index (.QSI), opens new tab eased 0.1%, pressured by a 1.1% decline in Qatar International Islamic Bank (QIIB.QA), opens new tab and a 1.7% drop in Qatar Gas Transport (QGTS.QA), opens new tab.
U.S. central bank policymakers lowered their rate cut projections for 2025 to 50 basis points, from 100 basis points, and increased their inflation forecast. Traders are pricing in just about 35 basis points of easing for 2025.
The Fed's decisions have a significant impact on the Gulf region's monetary policy, as most currencies there are pegged to the U.S. dollar.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab was down for a third day, dropping 0.5%. Commercial International Bank (COMI.CA), opens new tab slipped 1.4% and El Sewedy Electric (SWDY.CA), opens new tab lost 2.1%.
Egypt's central bank is expected to leave its overnight interest rates unchanged at a Dec. 26 meeting, a Reuters poll showed on Monday.
