MIDEAST STOCKS-Most Gulf bourses edge up on energy relief, fading Fed hike odds

By Reuters News

- Most major Gulf markets opened modestly higher on Monday as easing energy disruption fears and tempered expectations of an immediate Federal Reserve rate hike bolstered sentiment, while the Middle East war continued to simmer.

Cooling US jobs data and sharp downward payroll revisions slashed the odds of a Fed rate hike this month from 64% to under 20%, according to the CME FedWatch tool, though traders still anticipate a December move.

Gulf markets tend to track shifts in US monetary policy expectations as most regional currencies are pegged to the dollar.

Middle East crude exports surpassed levels seen before the start of the US-Iran war on four days in late September, shipping data showed on Monday, defying continued vessel attacks in the Strait of Hormuz. Release of oil stocks by the Group of Seven nations further boosted supplies. O/R

Dubai's main share index .DFMGI gained 0.1%, with top lender Emirates NBD ENBD.DU rising 0.9%.

In Abu Dhabi, the index .FTFADGI was up 0.3%.

The Qatari index .QSI was up 0.5%.

Bucking the trend, Saudi Arabia's benchmark index .TASI fell 0.7%, hit by a 1.3% slide in Al Rajhi Bank 1120.SE.

On Sunday, Yemen's Saudi-backed, internationally recognised government launched a major military campaign to take back all territory held by the Iran-backed Houthis.

The Houthis said they fired ballistic missiles and drones at oil major Saudi Aramco 2222.SE sites in Riyadh and Khurais, and claimed the strikes set off major fires. They called the attacks retaliation for what they said were 50 Saudi-led coalition air and missile strikes on Yemen in the past 12 hours.

Aramco shares traded flat.

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