Most major stock markets in the Gulf fell in early trading on Monday after data showed US producer prices increased more than expected in January, adding to concerns over inflation and dampening hopes for early rate cuts by the Federal Reserve.
US producer prices increased more than expected in January amid strong gains in the cost of services, which could amplify inflation worries.
Most Gulf Cooperation Council countries, including the United Arab Emirates (UAE), peg their currencies to the US dollar and follow the Fed’s policy moves closely.
Saudi Arabia’s benchmark index dropped 0.4% and was on course to snap a 12-day winning streak, hit by a 1% fall in Al Rajhi Bank.
UAE stock markets up on rising oil price, rate cheer
Elsewhere, oil behemoth Saudi Aramco eased 0.2%.
Oil prices - a catalyst for the Gulf’s financial markets -fell as investor attention returned to the demand outlook on worries that sticky inflation and higher interest rates would limit fuel consumption growth.
The Qatari benchmark lost 0.4%, hit by a 5% slide in Qatar Fuel Company.
In Abu Dhabi, the index dropped 0.3%. Dubai’s main share index gained 0.2%, with top lender Emirates NBD gaining 0.8%.
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