Most stock markets in the Gulf ended higher on Wednesday ahead of highly anticipated U.S. consumer price index data, which could potentially reshape the outlook for monetary policy in the world’s largest economy.

The upcoming data holds significant implications for markets, with forecasts of a modest 0.2% increase in the core measure. A strong reading of 0.3% or more could see the relentless selling in global stocks and bonds resume.

Overnight, U.S. producer price data for December was surprisingly tame, with the core measure flat in the month.

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

Saudi Arabia’s benchmark index gained 0.3%, with the country’s biggest lender Saudi National Bank rising 2.8%, while Saudi Arabian Mining Co (Maaden) advanced 1.5%.

Oil giant Saudi Aramco and Maaden are signing a preliminary agreement that could result in them establishing a joint venture for mineral exploration and extraction, Aramco’s upstream president Nasir Al-Naimi said on Wednesday.

However, shares of Aramco concluded flat.

Most Gulf shares gain as Gaza ceasefire hopes rise; Egypt snaps losing streak

Dubai’s mains share index nudged 0.1% higher, helped by a 4.4% jump in Emirates Integrated Telecommunications Co.

In Abu Dhabi, the index was up 0.2%.

Oil prices - a catalyst for the Gulf’s financial markets -crept higher as the market focused on potential supply disruptions from sanctions on Russian tankers, though gains were tempered by a lack of clarity on their impact.

The Qatari benchmark gained 0.4%, led by a 1.2% rise in Qatar Islamic Bank (QIB).

After trading hours, QIB reported a net profit of 4.61 billion riyals ($1.26 billion) for 2024, a 7% increase year-on-year.

Outside the Gulf, Egypt’s blue-chip index advanced 1.5%, extending gains from the previous session when it snapped a five-day losing streak.

--------------------------------------- SAUDI ARABIA    rose 0.3% to 12,212 Abu Dhabi       up 0.2% to 9,513 Dubai           added 0.1% to 5,251 QATAR           gained 0.4% to 10,429 EGYPT           leapt 1.5% to 29,390 BAHRAIN         was flat at 1,895 OMAN            lost 0.1% to 4,605 KUWAIT          was up 0.1% to 8,010---------------------------------------