Major stock markets in the Gulf were muted in early trade on ‍Tuesday, pressured ‍by weaker oil prices and caution over the ​Federal Reserve's policy outlook ahead of a widely expected U.S. interest ⁠rate cut this week.

Recent data showed that the U.S. ⁠Personal Consumption Expenditures (PCE) Price ‌Index, the Fed's preferred inflation measure, met expectations, while consumer sentiment improved in December.

In November, private ⁠payrolls saw their steepest decline in more than two-and-a-half years, but jobless claims for the week ended November 28 fell to their lowest level in three years.

According ⁠to CME's FedWatch Tool, ​markets are now pricing in an 89% chance of a quarter-point rate ‍cut at the Fed's December 9–10 meeting.

Oil prices - a catalyst for the ​Gulf's financial markets - edged down, extending losses from the 2% drop on Monday, with markets keeping a close eye on peace talks to end Russia's war in Ukraine, concerns about ample supply and a looming decision on U.S. interest rates.

Saudi Arabia's benchmark index edged 0.1% higher, helped by a 0.7% rise in Al Rajhi Bank.

Elsewhere, Consolidated Grunenfelder Saady Holding ⁠Co began trading 3% higher at 10.30 ‌riyals per share in its market debut.

Dubai's main share index eased 0.1%. In Abu Dhabi, the index added 0.1%.

The ‌Qatari ⁠benchmark was up 0.2%, with Qatar Islamic Bank gaining 1.1%.

(Reporting by ⁠Ateeq Shariff in Bengaluru; Editing by Eileen Soreng)