Most Gulf markets ease on earnings, US-China talks, Fed policy in focus | Reuters

Most Gulf markets ease on earnings, US-China talks, Fed policy in focus | Reuters

Most stock markets in the Gulf closed lower on Wednesday following a string of lacklustre corporate earnings, while focus was also on U.S.-China trade negotiations and the Federal Reserve's policy decision.

Saudi Arabia's benchmark index (.TASI), opens new tab fell 0.3%, weighed down by a 1% fall in Al Rajhi Bank (1120.SE), opens new tab and an 8.3% plunge in Mobile Telecommunications Company (7030.SE), opens new tab. The telecom firm missed analysts' first-quarter profit estimates.

Savola Group Company (2050.SE), opens new tab tumbled more than 7%, following a sharp decline in quarterly profit.

Elsewhere, Leejam Sports Company (1830.SE), opens new tab dived 10% - to its daily maximum limit - after reporting about a 25% drop in first-quarter profit.

Dubai's main share index (.DFMGI), opens new tab declined 0.3%, with blue-chip developer Emaar Properties (EMAR.DU), opens new tab losing 1.5%.

In Abu Dhabi, the index (.FTFADGI), opens new tab eased 0.1%.

The Fed will announce its policy decision later in the day. Expectations for cuts were dialled down after relatively solid U.S. labour data last week.

Markets imply nearly no chance of a move on Wednesday and only a 33% chance of a cut in June, down from 64% a month ago.

The Fed's decision affects monetary policy in the Gulf where most currencies, including the Saudi riyal, are pegged to the U.S. dollar.

The Qatari index (.QSI), opens new tab was down 0.1%, with Qatar Islamic Bank (QISB.QA), opens new tab losing 1.4%.

Meanwhile, U.S. Treasury Secretary Scott Bessent and chief trade negotiator Jamieson Greer will meet China's economic tsar He Lifeng in Switzerland this weekend for talks that could be the first step toward resolving a trade war disrupting the global economy.

Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab declined 1.4%, as most of its constituents were in negative territory, including Commercial International Bank (COMI.CA), opens new tab, which was down 2.3%.

Egypt's non-oil private sector economy contracted further in April after a decline in domestic and foreign demand caused new orders and output to fall for a second month, according to a survey released on Tuesday.