DUBAI: Stock markets in the Gulf were mostly mixed on Thursday on possible recession in the United States, the world’s largest economy, although the Egyptian bourse surged to its highest since mid-February.

The US Consumer Price Index (CPI) climbed 0.1% last month, below economists’ expectations for a 0.2% gain, and down from a 0.4% increase in February, raising expectations the Federal Reserve is likely to stop hiking rates after a possible increase in May.

Fed staff assessing the potential fallout of banking stress projected a “mild recession” later this year.

Dubai’s main share index closed 0.3% lower, after touching its peak for the year, dragged down by a 2.3% slide in top lender Emirates NBD Bank.

The Dubai market saw some downward pressures as traders moved to secure their gains, in particular after the Fed’s minutes’ mention of the potential for a recession in the US weighed on traders’ sentiment, said Fadi Reyad, Chief Market Analyst at CAPEX.com.

Outside the Gulf, Egypt’s blue-chip index jumped 5.6%, boosted by a 14.5% surge in Commercial International Bank .

World Bank President David Malpass on Thursday said the bank stands ready to provide support to Egypt, but important to see improvements in business climate.

Saudi Arabia’s benchmark index reversed early losses to finish 0.3% higher, with Retal Urban Development Co gaining 0.9%.