Stock markets in the Gulf ended mixed on Thursday as investors assessed the monetary policy and inflation outlook in the world’s largest economy.

Traders responded to a U.S. inflation print that was in line with expectations by ramping up bets on a Federal Reserve rate cut next month, though there was less certainty on what would happen after that given Donald Trump’s return to office.

The Fed’s decisions have a significant impact on the region’s monetary policy, as most currencies there are pegged to the U.S. dollar.

Saudi Arabia’s benchmark index declined 1.2%, weighed down by a 0.4% fall in aluminium products manufacturer Al Taiseer Group. Saudi Telecom Company (STC) dropped 2.2%.

The kingdom’s sovereign wealth fund PIF has raised 3.86 billion riyals ($1.03 billion) from selling a 2% stake in telecoms firm STC, PIF said on Thursday, as it seeks to raise funds for the Gulf country’s economic diversification programme.

Dubai’s main share index eased 0.1%, hit by a 1% fall in top lender Emirates NBD.

Most Gulf bourses in red as focus shifts to US inflation data

In Abu Dhabi, the index , helped by a 1.5% rise in conglomerate International Holding.

However, Lulu Retail Holdings - Middle East’s biggest hypermarket chain operator - finished flat in market debut.

The Qatari benchmark added 0.3%, with petrochemical maker Industries Qatar rising 1.7%.

Outside the Gulf, Egypt’s blue-chip index edged 0.1% higher, led by a 1.5% gain in tobacco monopoly Eastern Company, a day after report a steep rise in first-quarter profit.

---------------------------------------- SAUDI ARABIA     fell 1.2% to 11,791 ABU DHABI        rose 0.3% to 9,400 DUBAI            eased 0.1% to 4,729 QATAR            gained 0.3% to 10,455 EGYPT            up 0.1% to 31,462 BAHRAIN          was up 0.4% to 2,052 OMAN             down 0.2% to 4,644 KUWAIT           added 0.1% to 7,831----------------------------------------