Most Gulf stock markets ended lower on weak oil prices on Tuesday, although revived expectations of a U.S. interest rate cut in December limited losses.
Oil prices - a catalyst for the Gulf's financial markets - eased as oversupply concerns outweighed worries that Russian shipments will remain under sanctions as talks to end the Ukraine war remain inconclusive.
Saudi Arabia's benchmark index (.TASI), opens new tab was down 1.5%, dragged lower by a 2.7% fall in Saudi Aramco (2222.SE), opens new tab shares. Bloomberg News reported that the oil giant is exploring options to raise several billion dollars through asset sales.
Dubai's main share index (.DFMGI), opens new tab gave up early gains to close 0.1% lower, with Emaar Properties (EMAR.DU), opens new tab falling 1.1%.
Dubai approved a 2026-2028 budget with 302.7 billion dirhams ($82.42 billion) in expenditure and 329.2 billion dirhams in revenue, the state news agency said on Sunday.
In Abu Dhabi, the index (.FTFADGI), opens new tab ended 0.1% lower.
The Qatari index (.QSI), opens new tab declined 0.9%, with shares in Qatar Islamic Bank (QISB.QA), opens new tab losing 1.1%.
U.S. Federal Reserve Governor Christopher Waller said on Monday that the labor market has softened sufficiently to justify a 25-basis-point rate cut at the December meeting, but any further easing will hinge on a wave of economic data that was delayed by the recent government shutdown.
His remarks follow New York Fed President John Williams' comment on Friday that interest rates are likely to decline "in the near term".
Investors are now pricing in an 81% chance of a rate cut in December, up from 40% last week, the CME FedWatch Tool shows.
U.S. monetary policy shifts have a significant impact on Gulf markets, where most currencies are pegged to the dollar.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab gained 0.5%, with Commercial International Bank (COMI.CA), opens new tab rising 3.2%.
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