Major Gulf markets subdued on oil demand concerns
Aug 20 (Reuters) -Major stock markets in the Gulf were subdued on Tuesday amid concerns of weak oil demand, even as rising expectations of a U.S. interest rate cut next month provided some support.
Oil prices, a catalyst for the Gulf's financial markets, edged lower on easing worries about a supply disruption in the Middle East and as worries about China's economic weakness also weighed on the demand outlook.
In Qatar, the index .QSI eased 0.1%, with Qatar International Islamic Bank QIIB.QA losing 1.2%.
Dubai's main share index .DFMGI lost 0.1%, with Parkin Co PARKIN.DU, which oversees public parking operations in the Emirates, down 1.4%.
In Abu Dhabi, the index .FTFADGI was flat.
Saudi Arabia's benchmark index .TASI edged 0.1% higher in choppy trade, helped by a 1% rise in Al Rajhi Bank 1120.SE.
Oil giant Saudi Aramco 2222.SE was down 0.7%.
The U.S. Federal Reserve will cut interest rates by 25 basis points at each of the remaining three meetings of 2024, one more reduction than predicted last month, according to a slim majority of economists polled by Reuters who said a recession is unlikely.
Fed policymakers have in recent days signalled a potential rate easing in September.
Monetary policy in the six-member Gulf Cooperation Council (GCC) is usually guided by the Fed's decisions as most regional currencies are pegged to the U.S. dollar.
Reporting by Ateeq Shariff in Bengaluru; Editing by Shounak Dasgupta
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