Stock markets in major Gulf countries rose in early trading on Tuesday, ahead of the release of crucial U.S. inflation data due on Wednesday that could affect the Federal Reserve's pace of interest rate hikes.
GCC countries, including Saudi Arabia, the UAE and Qatar, peg their currencies to the dollar and follow the Fed's monetary policy. The region is thus directly exposed to interest rate changes in the U.S. economy.
Saudi Arabia's Tadawul All Share Index gained 0.4%, buoyed by a 1.1% increase in shares of Dr Sulaiman Al-Habib Medical Services.
The DFM Index in Dubai rose 0.1% to hit its highest level since 2015, helped by a 2.7% gain in Air Arabia shares.
Abu Dhabi's ADX General Index added 0.2%.
Oil prices, crucial for Gulf finances, edged up after falling in the previous session. Investors focused on supply cuts by Saudi Arabia and Russia and a weaker dollar.
In contrast, Qatar's QE Index fell 0.5% as most stocks declined, including Commercial Bank which dropped 2.4%. Separately, Saudi Arabia sent $2 billion to Pakistan's central bank, Pakistan's finance minister said, providing a boost to the country's struggling economy following an IMF bailout.
