Qatar's stock market ended lower on Sunday as comments from two U.S. Federal Reserve officials curtailed investor optimism that the central bank is nearing the end of its aggressive interest rate hikes.
Fed Governor Christopher Waller said at an economics conference that core inflation "is not coming down like I thought it would," which probably would require more tightening.
Most Gulf currencies are pegged to the dollar and any monetary policy change in the United States is usually mimicked by Saudi Arabia, the United Arab Emirates and Qatar.
The Qatari Stock index (.QSI) dropped 0.1%, extending its losses to a second session with Gulf's biggest lender Qatar National Bank (QNBK.QA) falling 0.2% and Qatar Islamic Bank (QISB.QA) shedding 1.1%.
Among the losers, Lesha Bank (QFBQ.QA) and Dukhan Bank (DUBK.QA) lost 1.1% and 1.3% respectively.
Saudi Arabia's benchmark index (.TASI) added marginally as losses in energy and financial sectors countered gains in most of the sectors.
Dr Sulaiman Al-Habib Medical Services (4013.SE) climbed 2.5% and Mouwasat Medical Services (4002.SE) surged 6.1%.
However, Riyad Bank (1010.SE) and the world's largest Islamic bank by assets Al Rajhi Bank (1120.SE) lost 2.1% and 0.7% respectively.
Outside the Gulf, Egypt's blue-chip index (.EGX30) continued its four-session winning streak and ended 0.8% higher with most sectors higher.
The index was lifted by a 5% jump in Eastern Co (EAST.CA) and 4.5% rise in El Sewedy Electric (SWDY.CA).
Separately, the International Finance Corporation (IFC) will act as a consultant for Egypt's ambitious IPO program, the county's prime minister said on Sunday.