Most major stock markets in the Gulf fell in early trade on Monday on market concerns that higher-than-expected inflation could delay cuts to high U.S. interest rates.
The Federal Reserve's favoured measure of inflation, the core personal consumption expenditures (PCE) price index, is due on Thursday and forecasts are for a rise of 0.4%.
Markets have already pushed the likely timing of the first Fed easing from May to June, which is currently priced at around a 70% probability. Futures imply a little more than three quarter-point cuts this year, compared to five at the start of the month.
Saudi Arabia's benchmark index (.TASI), opens new tab eased 0.1%, on course to extend losses from the previous session, with Saudi Telecom Company (7010.SE), opens new tab dropping 1.2%.
Among other losers, oil giant Saudi Aramco (2222.SE), opens new tab was down 0.3%.
Oil prices - a catalyst for the Gulf's financial markets - have drifted lower as concerns about demand, particularly from China, have outweighed risks to supply from the Middle East.
Dubai's main share index (.DFMGI), opens new tab fell 0.2%, hit by a 2% fall in toll operator Salik Company (SALIK.DU), opens new tab.
Most Gulf currencies are pegged to the dollar and any monetary policy change in the United States is usually mimicked by Qatar, the United Arab Emirates and Saudi Arabia.
Union Properties (UPRO.DU), opens new tab advanced more than 5% after announcing a sale of land worth over 500 million dirhams ($136.15 million). The developer is also studying additional offers on its assets, worth more than 12 billion dirhams, in cash sale.
The index was flat in Abu Dhabi (.FTFADGI), opens new tab, while the Qatari benchmark (.QSI), opens new tab eased 0.1%, a day after advancing 1% as the Gulf state plans to further expand gas production.
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