Stock markets in the Gulf ended mixed on Tuesday as expectations mounted U.S. interest rates will fall, with the Saudi index giving up early gains to close lower.

Monetary policy in the six-member Gulf Cooperation Council (GCC) is usually guided by the Federal Reserve’s policy because most regional currencies are pegged to the U.S. dollar.

U.S. monthly inflation was unchanged in May as a modest increase in the cost of services was offset by the largest drop in goods prices in six months, drawing the Fed closer to start lowering rates later this year.

Dubai’s main share index gained 0.2%, with toll operator Salik Co rising 2% and utility firm Dubai Electricity and Water Authority was up 1.8%.

In Abu Dhabi, the index finished 0.3% higher.

Saudi Arabia’s benchmark index declined 0.5%, weighed down by a 2.2% fall in Al Taiseer Group and a 1.2% decrease in the country’s biggest lender Saudi National Bank.

Major Gulf markets gain on possible US rate cuts, fuel demand

OPEC oil output rose in June for a second consecutive month, a Reuters survey found on Tuesday, as higher supply from Nigeria and Iran offset the impact of voluntary supply cuts by other members agreed with the wider OPEC+ alliance.

The Qatari index closed flat, following a 20-day winning streak.

Outside the Gulf, Egypt’s blue-chip index was up 0.1%, helped by a 3.3% jump in Talaat Mostafa Holding.

Talaat Moustafa Group is to invest $21 billion in the SouthMED tourism development project on Egypt’s Mediterranean coast, its chief executive said on Tuesday.

======================================= SAUDI ARABIA    fell 0.5% to 11,606 ABU DHABI       rose 0.3% to 9,088 DUBAI           gained 0.2% to 4,063 QATAR           closed flat at 10,006 EGYPT           up 0.1% to 27,986 BAHRAIN         eased 0.1% to 2,016 OMAN            lost 0.3% to 4,684 KUWAIT          finished flat 7,538=======================================