Major Gulf markets mixed with inflation in focus

Major stock markets in the Gulf showed a mixed trend in early trading on Tuesday as investors eyed a data-packed week, including key inflation figures due from the US

Inflation data from several major economies and manufacturing figures out of China are in focus this week. Most closely monitored will be Thursday’s release of the US personal consumption expenditures price index, which the Federal Reserve uses to track its 2 per cent inflation target.

Markets have already pushed out the potential timing of first easing, from May to June, with the current probability priced at around 70 per cent. Futures imply a little more than three quarter-point cuts this year, down from five at the beginning of the month.

Most Gulf currencies are pegged to the dollar and any monetary policy change in the United States is usually followed by Qatar, the United Arab Emirates and Saudi Arabia.

Saudi Arabia’s benchmark index (.TASI) gained 0.3 per cent, led by a 1.8 per cent rise in ACWA Power Co (2082.SE) and a 0.2 per cent increase in Al Rajhi Bank (1120.SE).

Meanwhile, shares of Avalon Pharma (4016.SE) jumped 30 per cent on the market debut.

In Abu Dhabi, the index (.FTFADGI) dropped 0.4 per cent.

Dubai’s main share index (.DFMGI) gained 0.5 per cent, with Emirates NBD (ENBD.DU) rising 1.1 per cent.

Meanwhile, US President Joe Biden on Tuesday said Israel has agreed to halt its military activities in Gaza for the Muslim holy month of Ramadan, as Hamas studied a draft proposal for a truce deal that includes a pause in fighting and a prisoner-hostage exchange.

The Qatari benchmark (.QSI) lost 0.2 per cent, hit by a 4.2 per cent fall in Qatar Gas Transport (QGTS.QA).