Most Gulf stock markets were subdued in early trade on Wednesday, in line with Asian shares, as traders wagered the US Federal Reserve will likely be slow in cutting interest rates after data showed the US economy remained stable.

Investor focus in 2025 will likely be on shifting US rate expectations, the growing divergence in policy path between US and other economies and the threat of tariffs once President-elect Donald Trump steps into the White House on Jan. 20.

The Fed in December projected just two rate cuts for 2025, lower than the four it had earlier predicted.

Markets are currently pricing in even less than that at 38 basis points, with the first cut fully priced in for July.

Data on Tuesday showed US job openings unexpectedly increased in November while hiring softened, suggesting the labour market slowed at a pace that probably does not require the Fed to be in a rush to cut rates.

Fed decisions have a significant impact on the Gulf region’s monetary policy as most of its currencies are pegged to the dollar. Dubai’s main share index fell 0.2% - on course to snap two sessions of gains - hit by a 2.2% slide in toll operator Salik Company.

Most Gulf markets gain ahead of US economic data

In Qatar, the index dropped 0.4%, with Commercial Bank declining 2.3%.

Saudi Arabia’s benchmark index was flat in a choppy trade.

Nice One Beauty Digital Marketing surged 30% on its debut trade to 45.5 riyals per share, from an offer price of 35 riyals.

In Abu Dhabi, the index bucked the trend to trade 0.7% higher.