Most Gulf bourses muted as lower oil, Fed rate uncertainty weigh

Most Gulf stock markets fell in early trade on Monday, tracking weaker oil prices, as investors awaited a raft of US economic data following the end of the government shutdown.

Oil, a key driver for Gulf financial markets, slipped as loadings resumed at the key Russian export hub of Novorossiysk after a two-day suspension at the Black Sea port that had been hit by a Ukrainian attack.

Brent was trading at $63.91 a barrel by 0810 GMT.

The Qatari benchmark index dropped 0.6%, weighed by broad-based declines.

Industries Qatar fell 1.4%, while Qatar National Bank, the region’s largest lender, eased 1%. Dubai’s benchmark stock index shed 0.3%, pressured by consumer staples, real estate and communications stocks.

Emaar Properties lost 2.2% and Spinneys 1961 Holding slipped 2.5%.

The Abu Dhabi benchmark index was down 0.5%, with most constituents in the red.

Abu Dhabi Commercial Bank fell 2.2% and Presight AI Holding declined 2.5%.

ADNOC Drilling slipped 1%, while associates ADNOC Gas, ADNOC Logistics and ADNOC Distribution also edged lower.

Separately, the European Commission on Friday gave oil major Abu Dhabi National Oil Company (ADNOC) conditional approval for its 14.7 billion euros ($17.07 billion) bid for German chemicals group Covestro. Saudi Arabia’s benchmark stock index rose 0.2%, with most sectors in positive territory.

Saudi National Bank gained 1% and Arabian Drilling advanced 3.5% after the company said it had secured four rig contract renewals, with a total value of more than 2 billion riyals ($533.32 million).

The main US data release this week will be Thursday’s delayed September non-farm payrolls report.

Market expectations for a US interest rate cut in December have fallen to below 50% after Federal Reserve policymakers struck a cautious tone.

Monetary policy shifts in the US have a significant impact on Gulf markets, where most currencies are pegged to the dollar.