Most Gulf markets slip on regional tensions; Dubai gains

Gulf stock market: Most major stock markets in the Gulf fell in early trade on Tuesday on rising tensions in the Middle East, although looming US interest rate cuts limited losses.

Israel issued new evacuation orders for Deir Al-Balah in the central Gaza Strip late on Sunday, forcing more families to flee, saying forces intended to act against militant group Hamas and others operating in the area.

The escalation comes with little hope of an end in sight to the war as diplomacy by mediators, Qatar, Egypt, and the United States has so far failed to close the gap between Israel and Hamas, whose leaders traded blame over responsibility for the lack of accord.

Saudi Arabia's benchmark index .TASI dropped 0.2 per cent, hit by a 0.6 per cent fall in Al Rajhi Bank 1120.SE and a 0.8 per cent decrease in top lender Saudi National Bank 1180.SE.

In Qatar, the index .QSI lost 0.1 per cent, a day after gaining 1.2 per cent, with petrochemical maker Industries Qatar IQCD.QA retreating 0.8 per cent.

Qatar agreed on Monday to supply Kuwait with 3 million tons per annum (mtpa) of liquefied natural gas (LNG) for 15 years, the second such deal since 2020 as Kuwait imports the fuel to help meet rising demand for power generation.

The Abu Dhabi index .FTFADGI eased 0.1 per cent.

Bucking the trend, Dubai's main share index .DFMGI rose 0.3 per cent, with blue-chip developer Emaar Properties EMAR.DU adding 1.1 per cent.

San Francisco Federal Reserve Bank President Mary Daly on Monday said "the time is upon us" to cut borrowing costs, echoing what Fed Chair Jerome Powell told a global central banking conference last week in Jackson Hole, Wyoming, but how big that first rate cut will be will depend on the data.

Traders see a 70 per cent chance of a 25-basis-point (bp) rate cut and about 30 per cent probability of a bigger 50-bp reduction, according to the CME FedWatch tool.