Most Gulf markets in black on Fed rate cut bets | Reuters

Most Gulf markets in black on Fed rate cut bets | Reuters

Most stock markets in the Gulf ended higher on Sunday, as U.S. inflation data raised expectations of an interest rate cut this year, while an increase in crude prices also supported the gains.

U.S. monthly consumer prices rose less than initially estimated in December, but underlying inflation remained a bit warm, data showed on Friday. The data revision did little to alter expectations for central bank rate changes.

U.S. inflation data for January is due on Tuesday.

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.

Saudi Arabia's benchmark index (.TASI) edged 0.5% higher, helped by a 0.5% rise in Al Rajhi Bank (1120.SE) and a 2% increase in Saudi Arabian Mining Co (1211.SE).

Separately, the kingdom is poised to sell more shares of energy giant Aramco (2222.SE), three people familiar with the matter said, which could boost the country's funding and its aim to wean the economy away from oil.

Shares of Aramco were down 0.8%.

In Qatar, the index (.QSI) advanced 0.8%, buoyed by a 10% jump in Qatar Gas Transport (Nakilat) (QGTS.QA), after QatarEnergy selected Nakilat to be the owner and operator of up to 25 conventional-size LNG carriers.

Elsewhere Qatar Navigation (QNNC.QA) - which owns more than 36% in Nakilat - surged 9.9%.

Oil prices - a catalyst for the Gulf's financial markets - settled higher on Friday, up about 6% on a week-on-week basis, as worries about supply from the Middle East mounted and as extended outages tightened refined products markets.

Outside the Gulf, Egypt's blue-chip index (.EGX30) dropped 0.8%, as most of the stocks on the index were in negative territory including Commercial International Bank (COMI.CA), which was down 1.2%.

IMF's Georgieva says Mideast growth to slow in 2024 on oil cuts, Gaza | Reuters

IMF's Georgieva says Mideast growth to slow in 2024 on oil cuts, Gaza | Reuters

The International Monetary Fund said on Sunday Middle East economies were lagging below growth projections due to oil production cuts and the Israel-Gaza conflict, even as the global economic outlook remained resilient.

Despite uncertainties, "the global economy has been surprisingly resilient," IMF managing director Kristalina Georgieva told the Arab Fiscal Forum in Dubai, while warning of a potential wider impact on regional economies of continued conflict in Gaza.

In a regional economic report last month, the IMF revised its GDP growth forecast for the Middle East and North Africa down to 2.9% this year, lagging below October projections, due in part to short term oil production cuts and the conflict in Gaza.

The IMF last month edged its forecast for global economic growth higher, upgrading the outlook for both the United States and China and citing faster-than-expected easing of inflation.