Most Gulf markets in black ahead of US inflation data

Sept 11 (Reuters) – Most stock markets in the Gulf ended higher on Monday, ahead of crucial U.S. inflation data that could provide cues about the Federal Reserve’s interest rate trajectory.

The U.S. Consumer Price Index (CPI) data, due on Wednesday, is expected to rise 0.6% month-on-month for August, likely taking the year-on-year rate to 3.6%, according to a Wells Fargo research note.

Monetary policy in the six-member Gulf Cooperation Council is usually guided by Fed policy as most regional currencies are pegged to the U.S. dollar.

Saudi Arabia’s benchmark index (.TASI) gained 0.7%, ending seven sessions of losses, with Al Rajhi Bank (1120.SE) gaining 0.9% and a 1.5% increase in petrochemical maker Saudi Basic Industries Corp (2010.SE).

The Saudi bourse stabilized to a certain extent but could remain exposed to more price corrections if oil prices retreat, said Ahmed Negm, Head of Market Research MENA at XS.com.

“Stronger performances in energy markets could support a rebound in local stocks as attention remains on the impact of Saudi crude production cuts on the local economy,” Negm added.

In Abu Dhabi, the index (.FTFADGI) finished 0.2% higher.

The Qatari benchmark (.QSI) gained 0.6%, with sharia-compliant lender Masraf Al Rayan (MARK.QA) advancing 4.1%.

Dubai’s main share index (.DFMGI) reversed early losses edged 0.1% higher.

The stock market in Dubai continued to see some pressure and could see more price corrections if traders move to secure their gains. The main index hit a peak at the end of last month and could remain on a strong course, said Negm.

Outside the Gulf, Egypt’s blue-chip index (.EGX30) dropped 1.5%, as most of the stocks on the index were in negative territory, including Commercial International Bank (COMI.CA), which was down 1.5%.

Egypt’s annual urban consumer price inflation rate surged to a higher-than-expected record 37.4% in August from 36.5% in July, data from the country’s statistics agency CAPMAS showed on Sunday.

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