Stock markets in the Gulf were mixed on Sunday amid strong oil prices as investors awaited clues on interest rate policy after the U.S. Federal Reserve's favored inflation reading showed moderating prices.
Oil prices - a catalyst for the Gulf's financial markets - settled at their highest in nearly two months on Friday, helped by higher demand expectations while Middle East supply concerns added support.
Saudi Arabia's benchmark index (.TASI) closed 0.8% higher, snapping previous session of losses, with all sectors in positive territory.
Saudi Arabian media firm MBC Group (4072.SE) jumped 7.5% and SAL Saudi Logistics Services Co (4263.SE) climbed 4.4%.
Among the gainers, the world's largest Islamic lender, Al Rajhi Bank(1120.SE) surged 3.4%, the highest rise since Dec 14.
The Qatari index (.QSI) dipped slightly to trade flat. Losses in energy, finance, and communication sectors offset gains in industry and utilities.
Commercial Bank (COMB.QA) and Qatar Gas Transport (QGTS.QA) dropped 1.3% each while Industries Qatar (IQCD.QA) and Qatar Electricity and Water (QEWC.QA) each added 0.6%.
The U.S. Commerce Department data showed on Friday that U.S. price pressures moderated in December, with markets hoping the data will keep the Fed on track to begin rate cuts by the middle of this year.
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.
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