By Ateeq Shariff
Stock markets in the Gulf ended mixed on Wednesday as concerns persisted about the U.S. Federal Reserve's independence following President Donald Trump's attempt to dismiss Fed Governor Lisa Cook.
Trump said he was removing her over alleged improprieties in obtaining mortgage loans, a step that could test the boundaries of presidential power over the U.S. Fed.
Cook said Trump has no authority to fire her from the central bank, and she will not resign.
Saudi Arabia's benchmark index TADAWUL:TASI dropped 0.6%, weighed down by a 1% fall in Al Rajhi Bank TADAWUL:1120 and 2.8% decline in the country's biggest lender Saudi National Bank TADAWUL:1180.
In Qatar, the index QSE:GNRI retreated 0.6%, hit by a 1.6% fall in Qatar Islamic Bank QSE:QIBK.
Oil prices - a catalyst for the Gulf's financial markets - steadied, after falling in the previous session, as investors watched for developments in the Ukraine war and weighed an industry report showing a drop in U.S. inventories and new U.S. tariffs on India.
Dubai's main share index DFM:DFMGI added 0.3%, helped by a 1% gain in blue-chip developer Emaar Properties DFM:EMAAR.
In Abu Dhabi, the index ADX:FADGI was up 0.2%.
The focus shifts to the Personal Consumption Expenditures Price Index, the Fed's preferred inflation gauge, due on Friday, for clues on the interest rate path after dovish remarks from Powell at Jackson Hole symposium last week.
Markets have priced in an 87% chance of a quarter-point rate cut at the Fed's September 17 policy meeting, according to CME FedWatch Tool.
The Fed's stance holds implications for Gulf economies, where most currencies are pegged to the U.S. dollar, making it an anchor for regional monetary stability.
Outside the Gulf, Egypt's blue-chip index EGX:EGX30 advanced 0.9%, led by a 4.1% jump in tobacco monopoly Eastern Company EGX:EAST.
Egypt's central bank is likely to cut its key interest rates by 100 basis points on Thursday to support growth as inflation cools, a Reuters poll showed.
SAUDI ARABIA
TADAWUL:TASI fell 0.6% to 10,808
Abu Dhabi
ADX:FADGI rose 0.1% to 10,182
Dubai
DFM:DFMGI gained 0.4% to 6,127
QATAR
QSE:GNRI dropped 0.6% to 11,339
EGYPT
EGX:EGX30 up 0.9% to 35,676
BAHRAIN
BAHRAIN:BHBX was down 0.2% to 1,926
OMAN
(.MSX30) added 0.4% to 5,034
KUWAIT
(.BKP) eased 0.3% to 9,153