DUBAI, Sept 28 (Reuters) - Stock markets in the Gulf may fall on Wednesday after Saudi Arabia and Iran dashed market hopes that the two major OPEC producers would find a compromise at a meeting in Algiers to help ease a global glut of oil.

Brent oil futures sank about 3 percent to around $46 a barrel on Tuesday after Iran rejected an offer from Saudi Arabia to limit its oil output in exchange for Riyadh cutting supply.

Saudi Arabia's equities index , which retreated 3.8 percent on Tuesday after the government said it would scale back financial bonuses and perks for public sector workers under an austerity drive, may continue to underperform.

"In Saudi Arabia it is very common to see an average public sector employee trading in the stock market, because someone from his family once made a fat profit - but those days are long gone now, they simply won't have the financial flexibility with these austerity moves," said a Jeddah-based broker.

The Saudi index, last at 5,731 points, has immediate technical support on its February low of 5,551 points.

(Reporting by Celine Aswad; Editing by Andrew Torchia) ((celine.aswad@thomsonreuters.com)(+9715 62247653)(Reuters Messaging: celine.aswad.thomsonreuters.com@reuters.net))