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Fed rate cut will not affect most Gulf stocks

In early trading on Wednesday, most Gulf stock markets were subdued due to falling oil prices. Investors awaited the delayed U.S. employment report for clues about the Federal Reserve's rate policy.

The price of oil, which is a major factor in Gulf financial markets' performance, fell on concerns about oversupply, but U.S. sanctions against the largest Russian producers have helped to limit losses. Brent crude traded at $64.53 per barrel as of 0810 GMT.

The markets are now waiting for the delayed September non-farm employment report. Traders have priced in a 42% probability of a 25 basis-point Fed rate reduction in December. This is down from a near certainty one month ago.

In the Gulf, most currencies are pegged with the dollar.

The benchmark Abu Dhabi index edged down by 0.1%, weighed down by a drop of 1% in ADNOC Distribution as well as a fall of 4.1% in Response Plus Holding. Two Point Zero Group rose 4.8% while Presight AI Holding rose 1.8%.

Seoul announced on Tuesday that South Korea had agreed to collaborate with the United Arab Emirates to build an artificial intelligence data campus, backed by the United States, in the Gulf.

Dubai's benchmark index fell 0.1% with the majority of constituents in negative territory. Emaar Properties fell 0.7% while Al Ansari Financial Services dropped 1.1%.

Saudi Arabia's benchmark index fell 0.1% with all sectors falling. Dar Al Arkan Real Estate and Bank Albilad both dropped by 1.2%. The chief executive of Dar Global, a developer's subsidiary, said on Tuesday that it hoped to fund a large part of its new Trump-branded resort in the Maldives using blockchain-based crypto tokens sold to U.S. retailers.

ADES Holding increased by 1.4% after announcing that its merger with Shelf Drilling is expected to be completed on November 25,

The benchmark Qatari index rose by 0.8%. This was due to gains across the board. Industries Qatar grew by 3% while Qatar National Bank grew by 1.1%.

(source: Reuters)