Major stock markets in the Gulf slipped in early trade on Wednesday, as easing oil prices weighed on sentiment, though losses were capped by growing expectations of a U.S. Federal Reserve rate cut in December.

Crude prices, a catalyst for the Gulf's financial markets, fell after President Volodymyr Zelenskiy stated that Ukraine is prepared to move forward with the U.S.-backed peace plan, raising the prospect of an eventual lifting of Western sanctions on Russian energy exports and increasing global supply.

Saudi Arabia's benchmark index dropped 0.9%, hit by a 1.8% fall in Al Rajhi Bank.

Elsewhere, shares of Umm Al Qura for Development and Construction Co plunged 8.4%, its biggest intraday fall since April - after Saudi Arabia's Public Investment Fund disclosed on Wednesday that it had generated 950 million riyals ($250 million) by selling a 3.3% stake in the company.

Among other losers, oil behemoth Saudi Aramco was down 0.2%.

Dubai's main share index fell 0.3%, with toll operator Salik Co losing 1.4%.

In Abu Dhabi, the index was down 0.3%.

Data released Tuesday showed U.S. retail sales rose less than forecast in September, while the Producer Price Index climbed 2.7% year-on-year through September, matching the prior month-earlier gain.

The figures followed a series of dovish comments from Federal Reserve officials in recent days.

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

The Qatari index was flat in a choppy trade.

($1 = 3.7506 riyals)

(Reporting by Ateeq Shariff in Bengaluru; Editing by Rashmi Aich)