Saudi Arabia's stock market ended lower on Sunday as investors continued to parse U.S. economic data to determine when borrowing costs could fall, while the Qatari index gained.
U.S. consumer prices increased more than expected in December, with Americans paying more for housing and healthcare, suggesting it was probably too early for the Federal Reserve to start cutting interest rates.
Expectations for a rate cut in March were also tempered by data on Thursday showing the labor market remained fairly tight at the start of this year, with the number of new unemployment claims unexpectedly falling last week.
Saudi Arabia's benchmark index (.TASI) dropped 0.5%, falling for a fifth consecutive session, hit by a 0.7% fall in Al Rajhi Bank (1120.SE) and a 0.8% decrease in the country's biggest lender Saudi National Bank (1180.SE). Stocks in Bahrain and Kuwait also edged lower.
Monetary policy in the six-member Gulf Cooperation Council (GCC) is usually guided by Fed policy because most regional currencies are pegged to the U.S. dollar.
Outside the Gulf, Egypt's blue-chip index (.EGX30) advanced 1.8%, buoyed by a 6% surge in Talaat Mostafa Group Holding (TMGH.CA).
Abu Dhabi wealth fund ADQ has agreed to acquire a 40.5% stake in ICON, the hospitality arm of Egypt's Talaat Moustafa Group, the fund said on Friday, a deal that will see it take part ownership of a number of luxury hotels in the country.
In Qatar, the index (.QSI) gained 0.4%, led by a 2.8% rise in telecom group Ooredoo (ORDS.QA).
Oil rose 1% on Friday as an increasing number of oil tankers diverted course from the Red Sea following overnight air and sea strikes by the U.S. and Britain on Houthi targets in Yemen after attacks on shipping by the Iran-backed group.
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