Gulf markets trade in tight range ahead of US inflation data | Reuters

Gulf markets trade in tight range ahead of US inflation data | Reuters

Stock markets in the Gulf traded in a tight range on Tuesday as caution prevailed ahead of U.S. inflation data and the Federal Reserve policy decision.

The Fed is widely expected to hold interest rates steady on Wednesday and keep them at the same level until at least July, later than earlier thought. The U.S. Consumer Price Index (CPI) report is due later on Tuesday.

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

Dubai's benchmark stock index (.DFMGI) fell 0.1% in early trade, with most sectors trading in negative territory.

Emaar Properties (EMAR.DU) declined 1.2% and the emirate's largest lender, Emirates NBD (ENBD.DU), dropped 1.2%.

The Qatari benchmark stock index (.QSI) slipped 0.1%, with most sectors in negative territory, dragged down by a 0.9% drop in Qatar Commercial Bank (COMB.QA) and 0.4% decline in Qatar National Bank (QNBK.QA), the region's largest lender.

Saudi Arabia's benchmark stock index (.TASI) rose 0.2%, helped by gains in most sectors. Elm Company (7203.SE) jumped 2%, while Al Rajhi Bank (1120.SE), the world's biggest Islamic lender, and Saudi National Bank (1180.SE), the Kingdom's biggest bank, climbed 1.1% and 1.3%, respectively.

In Abu Dhabi, the benchmark stock index (.FTFADGI) inched up, supported by a 1.6% rise in Alpha Dhabi (ALPHADHABI.AD) and 3.3% gain in Emirates Driving Company (DRIVE.AD).

However, First Abu Dhabi Bank (FAB.AD), the UAE's largest lender, lost 0.8%.