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Gulf markets are mixed early in the trading as US shutdown raises concern

The major Gulf stock markets opened mixed on Wednesday as the U.S. shutdown caused concern about the delayed release of vital jobs data and future interest rate trends.

Deep partisan divides between Congress and the White House prevented them from reaching an agreement on funding. This could have led to a long, painful standoff, which could result in the loss of thousands federal jobs.

The shutdown may delay the release key economic data such as the non-farm payrolls reports due on Friday.

The U.S. monetary policy changes have a major impact on Gulf markets where the majority of currencies are pegged with the dollar.

Saudi Arabian Mining Company gained 1.1% and the benchmark index in Saudi Arabia increased by 0.1%.

ADNOC Distribution, which traded ex-dividend, was responsible for a 2.9% drop in the Abu Dhabi index.

After two days of declines, oil prices - a key catalyst for Gulf financial markets – have stabilized as investors weigh OPEC+'s plans for a higher output next month against the impact of a U.S. Government shutdown on economic activity and fuel consumption.

Dubai's benchmark DFM General Index grew 0.5% on the back of gains in major stocks. Blue-chip real estate developer Emaar Properties climbed 1.9%.

Spinneys, a supermarket operator in the Philippines, saw its shares rise 2.6% after the announcement that it would be launching premium grocery stores with Ayala Corp.

The benchmark for Qatar fell by 0.8% as the largest lender in the Gulf, Qatar National Bank, saw its share price fall by 1.2%.

(source: Reuters)