MIDEAST STOCKS-Major Gulf markets mixed on easing US-China trade tensions, tepid earnings

Oct 27 (Reuters) – Major Gulf stock markets were mixed in early trade on Monday, as indications of easing U.S.-China trade tensions that supported risk sentiment coincided with corporate earnings reports that provided limited uplift to investor confidence. Top Chinese and U.S. economic officials hashed out the framework of a deal for U.S. President Donald Trump and Chinese President Xi Jinping to decide on later this week, easing fears that tariffs and export curbs between the world's top two oil consumers could dent global growth. Saudi Arabia's benchmark index gained 0.3%, with Al Rajhi Bank rising 0.8%. Banque Saudi Fransi (BSF) advanced 3.4%, set to snap four sessions of losses. BSF reported a third-quarter net profit of 1.35 billion riyals ($359.96 million), up from year-ago's 1.15 billion riyals, though it marked a sequential decline. However, Mobile Telecommunication Company Saudi Arabia , popularly known as Zain Saudi, declined 1.6%, following a 2% increase in third-quarter profit. Abu Dhabi's index added 0.2%, led by financial shares, including the country's biggest lender First Abu Dhabi Bank. According to media reports, the bank and Abu Dhabi Commercial Bank are laying the groundwork for potential significant risk transfer deals amid rising capital requirements. Abu Dhabi Commercial Bank shares were suspended ahead of its earnings announcement. Meanwhile, the U.S. Federal Reserve is widely expected to cut rates by a quarter percentage point at its meeting on Wednesday, a view supported by Friday's softer-than-expected inflation report. Most Gulf Cooperation Council countries have their currencies pegged to the U.S. dollar, exposing the region to the direct impact of monetary tightening in the world's largest economy. Dubai's main share index eased 0.2%, after a 1.6% fall in Emirates NBD Bank. Qatari index lost 0.3%, following a 2.2% slide in Qatar Electricity and Water Company after its nine-month net profit drop. ($1 = 3.7504 riyals) (Reporting by Ateeq Shariff in Bengaluru; Editing by Harikrishnan Nair)

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