By Ateeq Shariff
Most Gulf stock markets closed higher on Sunday as softer-than-anticipated U.S. inflation data bolstered hopes for a Federal Reserve interest rate cut this week, while Saudi Arabia's index dipped in tandem with oil prices.
U.S. consumer prices increased slightly less than expected in September as a surge in the cost of gasoline was partially offset by a sharp moderation in rents, keeping the Fed on track to cut interest rates again on Wednesday.
Monetary policy shifts in the U.S. have a significant impact on Gulf markets, where most currencies are pegged to the dollar.
In Qatar, the index QSE:GNRI gained 0.3%, led by a 1.5% rise in petrochemical maker Industries Qatar QSE:IQCD, while Barwa Real Estate Company QSE:BRES added 0.3% ahead of its nine-month earnings announcement, due later on Sunday.
Qatar Electricity and Water Company QSE:QEWS retreated 0.4% ahead of nine-month results, also expected on Sunday.
Saudi Arabia's benchmark index TADAWUL:TASI eased 0.2%, hit by a 0.8% fall in Al Rajhi Bank TADAWUL:1120 and a 2.6% slide in Banque Saudi Fransi (BSF) (1050.SE0), marking its fourth straight session in the red.
On Monday, BSF reported a third-quarter net profit of 1.35 billion riyals ($359.96 million), up from 1.15 billion riyals a year earlier, though it marked a sequential decline.
Elsewhere, Saudi Tadawul Group TADAWUL:1111 - the bourse's owner and operator - tumbled 3.4%, following a 41% plunge in quarterly profit.
Oil prices - a catalyst for the Gulf's financial markets - fell on Friday due to questions in the market over the Trump administration's commitment to sanctions on Russia's two biggest oil companies over the war in Ukraine.
Among other losers, oil giant Saudi Aramco TADAWUL:2222 was down 0.5%.
Separately, the kingdom's investment minister said on Sunday that 85% of the kingdom's targets for its Vision 2030 economic programme were complete or on track as of the end of 2024.
Outside the Gulf, Egypt's blue-chip index EGX:EGX30 advanced 1.1%, hitting a new record high, as most of its constituents were in positive territory including Commercial International Bank EGX:COMI, which was up 1.1%.
Saudi Arabia
TADAWUL:TASI fell 0.2% to 11,593
Qatar
QSE:GNRI added 0.3% to 10,912
Egypt
(.EGYPT) climbed 1.1% to 38,102
Bahrain
BAHRAIN:BHBX gained 0.7% to 2,006
Oman
(.MSX30) was up 0.5% to 5,396
Kuwait
(.BKP) eased 0.1% to 9,446
($1 = 3.7504 riyals)