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Stock markets in the Gulf ended mixed on Tuesday following a decline in oil prices as investors awaited the outcome of the U.S. central bank's meeting.
Crude prices - a catalyst for the Gulf's financial markets - hit their lowest levels since early June over concerns about Chinese demand and as the market shrugged off the risk of conflict escalating in the Middle East.
A raft of disappointing economic news out of China has shaken markets recently. China's manufacturing activity likely shrank for a third month in July, a Reuters poll showed on Monday.
Saudi Arabia's benchmark index <.TASI> dropped 0.5%, with aluminium products manufacturer Al Taiseer Group <4143.SE> declining 4% and oil giant Saudi Aramco <2222.SE> retreating 0.9%.
Dubai's main share index <.DFMGI> dropped 0.6%, weighed down by a 7.2% decline in Mashreqbank <MASB.DU> and a 1.7% decrease in utility firm Dubai Electricity and Water Authority <DEWAA.DU>.
However, Dubai Financial Market <DFM.DU>, which operates the Dubai exchange, advanced 1.6% after reporting a higher quarterly net profit.
In Abu Dhabi, the index <.FTFADGI> finished flat.
Markets are pricing almost no chance of a U.S. rate cut this week but, having fully priced a 25-basis-point reduction in September, expect dovish comments from Fed policymakers in its two-day meeting that ends on Wednesday. FEDWATCH
Monetary policy in the six-member Gulf Cooperation Council (GCC) is usually guided by the Fed's decisions as most regional currencies are pegged to the U.S. dollar.
In Qatar, the index <.QSI> dropped 0.2%, with telecom operator Ooredoo <ORDS.QA> losing 1.1%, ahead of its earnings announcement.
Outside the Gulf, Egypt's blue-chip index <.EGX30> gained 0.5%, led by a 1.7% rise in Talaat Mostafa Group <TMGH.CA>.
The International Monetary Fund said on Monday it had completed a review allowing Egypt to draw $820 million, saying efforts to restore macroeconomic stability had started to yield results but urging more progress on reining in state-owned enterprises.
SAUDI ARABIA | <.TASI> fell 0.5% to 12,065 |
ABU DHABI | <.FTFADGI> was flat at 9,396 |
DUBAI | <.DFMGI> down 0.6% to 4,284 |
QATAR | <.QSI> dropped 0.2% to 10,150 |
EGYPT | <.EGX30> added 0.7% to 29,039 |
BAHRAIN | <.BAX> was up 0.3% to 1,979 |
OMAN | <.MSX30> rose 0.3% to 4,664 |
KUWAIT | <.BKP> eased 0.1% to 7,841 |
(Reporting by Ateeq Shariff in Bengaluru; Editing by Shailesh Kuber)