Gulf stocks gain, oil supply worries ease, Fed hike bets recede

Most major Gulf stock markets opened higher on Tuesday as worries about oil supply eased, expectations for a near-term US interest rate hike fell and global risk sentiment improved. Data showed Gulf oil flows excluding Iran rose to more than 81% of pre-war levels in September, helped by a rebound in Saudi exports. The recovery came despite attacks on Saudi Arabia's oil infrastructure and a wave of Iranian strikes on regional shipping. Iran's exports, meanwhile, fell to zero under a US blockade.

4%. 6% and Saudi Aramco climbed 1%. Developments in Yemen also supported sentiment. Saudi Arabia said Saudi-backed Yemeni forces advanced on Monday to recapture coastline along the Bab el-Mandeb Strait up to the port city of Mocha, pushing Iran-aligned Houthi forces out of most areas seized last month.

Elsewhere in the region, gains were modest. 1%. US data also helped the upbeat tone. Bets on a US rate hike in October faded after Friday's data showed job growth slowed more than expected in 6.

September's jobs data, together with lower revisions to nonfarm payrolls for the previous two months, helped ease expectations for an immediate move. Traders are still pricing in tightening, with CME's FedWatch Tool showing an 87% chance of a rate increase in December. Gulf markets often react to shifts in US monetary policy expectations because most regional currencies are pegged to the dollar. 1%.

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