Most stock markets in the Gulf ended lower on Thursday, ahead of the U.S. economic data that could clarify the Federal Reserve's interest rate outlook.
Investors are waiting for the release of the Personal Consumption Expenditures (PCE) Price Index, the preferred inflation measure of the U.S. Fed, scheduled for Friday.
The Fed's stance holds implications for Gulf economies, where most currencies are pegged to the U.S. dollar.
Saudi Arabia's benchmark index (.TASI), opens new tab dropped 0.7%, hit by a 1.1% fall in Al Rajhi Bank (1120.SE), opens new tab and a 2.2% decline in ACWA Power Company (2082.SE), opens new tab.
Elsewhere, oil giant Saudi Aramco (2222.SE), opens new tab was down 0.2%.
Caution prevailed among investors ahead of the upcoming U.S. PCE inflation data. This report is critical for GCC markets, as U.S. inflationary trends and their impact on monetary policy heavily influence the region's monetary policies, said Joseph Dahrieh, Managing Principal at Tickmill.
"Furthermore, oil prices, despite being relatively stable this week, continue to pose a risk to the Saudi market due to their current low levels."
Oil prices — a catalyst for the Gulf's financial markets — fell after rising in the previous session, pressured by expectations of lower U.S. fuel demand at the end of the summer travel season and by the restart of Russian supply to Hungary and Slovakia through the Druzhba pipeline.
Oil prices — a catalyst for the Gulf's financial markets — fell after rising in the previous session, pressured by expectations of lower U.S. fuel demand at the end of the summer travel season and by the restart of Russian supply to Hungary and Slovakia through the Druzhba pipeline.
The Qatari index (.QSI), opens new tab retreated 1%, with petrochemical maker Industries Qatar (IQCD.QA), opens new tab losing 2.2%.
Dubai's main share index (.DFMGI), opens new tab was down 0.7%, with blue-chip developer Emaar Properties (EMAR.DU), opens new tab falling 1.4%.
In Abu Dhabi, the index (.FTFADGI), opens new tab slipped 0.6%.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab edged 0.1% higher, helped by a 2.3% rise in Fawry for Banking Technology and Electronic Payment (FWRY.CA), opens new tab.
Egypt's Prime Minister Mostafa Madbouly on Thursday discussed activating a $7.5 billion "partnership package" with his Qatari counterpart, Egypt's cabinet said in a statement.
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