Major Gulf markets mixed as Fed rate bets offset higher oil prices

Gulf stock markets put in a mixed performance early on Monday as a boost from higher oil prices was offset by concerns that the US Federal Reserve could hike interest rates again, reports Reuters.

Federal Reserve chair Jerome Powell, speaking on Friday, reiterated the central bank may have to raise rates further to cool still-too-high inflation but promised to move "carefully".

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

Oil prices ticked higher after China took steps to support its flagging economy, though investors remained worried about the pace of growth and any further US rate hikes dampening demand, with Brent crude futures 0.3 per cent higher at $84.73 a barrel by 0815 GMT.

Saudi Arabia's benchmark stock index inched up 0.1 per cent to extend gains to a third session in a row with financials and material stocks leading a broader rise across most sectors. Saudi Arabia's second-largest lender by assets Al Rajhi Bank was 0.3 per cent higher and food retailer Savola Group was up 1.8 per cent.

Oil and gas driller ADES Holding, backed by Saudi Arabia's sovereign wealth fund announced plans to proceed with an initial public offering (IPO) on the Saudi Exchange.

Dubai's main share index gained 0.2 per cent, supported by higher financial and property stocks as Emirates NBD Bank rose nearly 0.6 per cent and blue-chip developer Emaar Properties added 0.8 per cent.