Major markets mixed on hopes of a US rate cut, weak oil demand By Reuters

(Reuters) – Major Gulf stock markets were mixed in early trade on Monday amid rising expectations of a U.S. interest rate cut next month and weak demand for oil.

Federal Reserve members Mary Daly and Austan Goolsbee in interviews on Sunday signaled the possibility of easing in September, while minutes from the latest policy meeting, due this week, should outline a dovish outlook.

Fed Chairman Jerome Powell speaks in Jackson Hole on Friday and investors assume he will concede the case for a cut.

The monetary policy of the six-member Gulf Cooperation Council (GCC) is usually guided by the Fed’s decisions, as most regional currencies are pegged to the US dollar.

Qatar’s benchmark index gained 0.1 percent, helped by a 0.5 percent rise in petrochemicals maker Industries Qatar and a 1.1 percent gain in telecom Ooredoo.

In Abu Dhabi, the index added 0.3%.

Saudi Arabia’s benchmark index fell 0.1%, hit by a 0.2% drop in the oil giant Saudi Aramco (TADAWUL:).

Oil prices – a catalyst for Gulf financial markets – eased as concerns about falling demand in major oil importer China weighed on market sentiment as investors focused on progress in ceasefire talks in the Middle East, which could reduce supply risks.

Dubai’s main share index fell 0.1 percent, with top lender Emirates NBD losing 0.5 percent.