April 27 (Reuters) - Major stock markets in the Gulf
were mixed in early trade on Thursday as recession fears grew in
United States.
U.S. consumer confidence dropped to a nine-month low in
April as worries mounted, heightening the risk of the economy
falling into recession this year.
Saudi Arabia's benchmark index dropped 0.3%, on
course to snap a six days of gains, with Al Rajhi Bank losing 1.7%. The bank reported profits that were lower than last
quarter although higher than the same period a year ago.
Investors are also worried that further potential interest
rate hikes by inflation-fighting central banks could slow
economic growth.
Most Gulf Cooperation Council countries, including Saudi
Arabia, the United Arab Emirates and Qatar, have their
currencies pegged to the U.S. dollar and follow the Fed's policy
moves closely, exposing the region to monetary tightening in the
world's largest economy.
In Abu Dhabi, the index gained 0.5%.
Oil prices - a key catalyst for the Gulf's financial markets
- rose slightly, finding some support after heavy losses in the
previous two sessions driven by fears of a U.S. recession and an
increase in Russian oil exports which dulled the impact of OPEC
production cuts.
Dubai's main share index added 0.4%, with its top
lender Emirates NBD rising 1.9%.
Separately, the United Arab Emirates is selling 1.1 billion
dirhams ($299.6 million) of Islamic bonds denominated for the
first time in the local currency, state news agency WAM said, a
move aimed at deepening the country's Islamic finance markets.
The Qatari index eased 0.1%, with Doha Bank declining about 4% after posting a decline in first-quarter
profit.
($1 = 3.6715 UAE dirham)
(Reporting by Ateeq Shariff in Bengaluru
Editing by Peter Graff)
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