Major stock markets in the Gulf were mixed in early trade on Tuesday amid falling oil prices and on expectations the US Federal Reserve is likely done with interest rate hikes.

Stock markets have broadly rebounded in November, as a flurry of data that showed US inflation might be easing has spurred bets that the Fed is done with monetary tightening and rate cuts may be on the way next year.

Monetary policy in the six-member Gulf Cooperation Council (GCC) is usually guided by the decisions of the Fed, as most regional currencies are pegged to the dollar.

Saudi Arabia’s benchmark index edged 0.1% higher, helped by a 0.7% rise in ACWA Power Co and a 1.9% increase in Power and Water Utility Co For Jubail and Yanbu.

Most Gulf markets fall, Dubai gains

The Qatari benchmark added 0.3%, with petrochemical maker Industries Qatar advancing 1.3%. Separately, the chief of Hamas told Reuters on Tuesday that the Palestinian militant group was near a truce agreement with Israel, even as the deadly assault on Gaza continued and rockets were being fired into Israel.

In Abu Dhabi, the index lost 0.2%. Oil prices - a catalyst for the Gulf’s financial markets - eased, reversing the previous day’s rally, as investors turned cautious ahead of a meeting of OPEC+ this Sunday when the producer group may discuss deepening supply cuts due to slowing global growth.

Dubai’s main share index dropped 0.2%, hit by a 0.4% fall in blue-chip developer Emaar Properties.