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Mon 5 Nov 2012 11:51 AM

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Gulf markets seen muted ahead of US vote

Gulf investors are likely to be cautious ahead of Tuesday's US elections

Gulf markets seen muted ahead of US vote
Gulf investors are likely to be cautious ahead of Tuesdays US elections.

Gulf investors are likely to be cautious ahead of Tuesday's US elections, while Kuwait's bourse may extend declines following further political protests.

"Global investors are on pause, holding their breath for the US elections," says Firass Yaish economic consultant at Trust Capital. "Thin cautious trading will define the next trading sessions. An Obama re-election might be perceived as positive for regional equities."

Asian shares fell on Monday and the dollar firmed as investors shied away from risk ahead of the closely fought US presidential election and looked past strong US jobs data to fragile economic growth prospects worldwide.

Brent crude edged above US$106 per barrel on Monday as a more than 2 percent drop on Friday attracted some buyers.

In Kuwait, security forces fired tear gas to disperse an unauthorised demonstration on Sunday by thousands of opposition supporters against new voting rules for parliamentary elections on December 1.

Kuwait's index slumped to a new eight-year closing low on Sunday ahead of the protest.

In the United Arab Emirates, shares in Dubai Islamic Bank will be in focus after the lender reported a flat third-quarter net profit on Sunday, beating analysts' forecasts.