Most stock markets in the Gulf ended lower on Tuesday, ahead of U.S. inflation data later in the session, which could provide an indication of whether global interest rates might start to fall.

Monetary policy in the six-member Gulf Cooperation Council (GCC) is usually guided by Fed decisions as most regional currencies are pegged to the U.S. dollar.

U.S. Federal Reserve Chair Jerome Powell and other policymakers have said they are still not sure that interest rates are high enough to tame inflation.

Dubai’s main share index eased 0.2%, hit by a 2.3% fall in blue-chip developer Emaar Properties.

In Abu Dhabi, the index fell 0.1%.

Gulf markets mixed on interest rate worries

The Abu Dhabi bourse remained in an uncertain direction and traded sideways for almost a week now. The main index stabilized after a rebound at the beginning of the month, said Muhannad Al-Teneiji, Founder of Wealth Training Center and the company Matrix for AI Applications.

“While ADNOC Drilling announced strong earnings, its impact on the larger market remained limited but could help improve sentiment.”

ADNOC Drilling finished 1.7% higher, after posting a sharp rise in third-quarter earnings.

The Qatari benchmark dropped 0.2%, with the Gulf’s biggest lender Qatar National Bank losing 1.8%.

Saudi Arabia’s benchmark index, however, gained 0.6%, with Elm Co rising 2.4% and oil giant Saudi Aramco closing 0.5% higher.

Oil prices, often a catalyst for Gulf financial markets, edged higher after the International Energy Agency (IEA) raised its demand growth forecasts, adding to bullish sentiment from the previous day’s OPEC guidance.

The IEA raised its oil demand growth forecasts for this year and next despite an expected slowdown in economic growth in nearly all major economies.

Outside the Gulf, Egypt’s blue-chip index lost 0.2%.

======================================== SAUDI ARABIA     rose 0.6% to 10,857 ABU DHABI        fell 0.1% to 9,530 DUBAI            lost 0.2% to 3,973 QATAR            eased 0.2% to 10,017 EGYPT            down 0.3% to 23,894 BAHRAIN          was up 0.2% to 1,939 OMAN             rose 0.3% to 4,576 KUWAIT           dropped 0.2% to 7,181========================================