Mideast Stocks: Gulf markets end mixed on weak oil, US rate cut hopes

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Stock markets in the Gulf ended mixed on Thursday, as declining oil prices weighed on sentiment, while a weak private U.S. labour market report fuelled optimism for potential Federal Reserve interest rate cuts.

The U.S. government shutdown made it a near certainty that crucial monthly payrolls data will not be released on Friday, but overnight the private ADP employment report showed the economy unexpectedly shed jobs in September, with the prior month also revised to a decline.

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

Saudi Arabia's benchmark index dropped 0.3%, hit by a 1.1% fall in Al Rajhi Bank and a 1.8% decrease in the biggest lender by assets, Saudi National Bank. Overall market sentiment remains positive, and further gains are possible given the solid fundamentals, said Milad Azar, Market Analyst at XTB MENA.

However, lower oil prices pose a risk, as additional losses could negatively impact investor confidence, he said.

The Saudi Capital Market Authority called for a public consultation on opening its main stock market to all categories of non-resident foreign investors and enabling them to directly invest in it, the regulator said on Wednesday. Dubai's main share index gained 0.5%, with blue-chip developer Emaar Properties rising 1.9%.

In Abu Dhabi, the index rose 0.4%. The Qatari index fell 0.8%, weighed down by a 1.5% fall in Qatar Islamic Bank . Oil prices - a catalyst for the Gulf's financial markets - edged lower, extending declines into a fourth day due to concerns about oversupply.

Outside the Gulf, Egypt's blue-chip index concluded 0.4% higher, with Commercial International Bank rising 1.3%.