Gulf stock markets may consolidate on limited trading volume on Tuesday before closing for the rest of the week for the Muslim holiday of Eid al-Adha.
Crude oil prices, which remain one of the most important factors for investor sentiment in the region, fell on Tuesday as traders took profit following a 4 percent bounce in the previous session and as conflicting market signals tore at prices.
But US stock indexes rose overnight and Asia followed on Tuesday, after two Fed officials made the case for an increase in US interest rates this year and the European Central Bank reiterated its readiness to modify its trillion-euro bond-buying program should economic turbulence merit action.
In the Gulf, Dubai property developer DAMAC and telecommunications operator du may fall as both stocks no longer carry dividends. News of a $100 million borrowing, however, may offset some pressure on DAMAC as investors may see it as a step towards expanding the company's business.
Saudi Arabia's bourse has already closed for Eid al-Adha and most other markets in the Middle East will do so from Wednesday, so trading activity may be lower than usual on Tuesday.
