Most major Gulf markets gain on oil, look to US inflation data

Nov 14 (Reuters) – Most major Gulf stock markets rose in early trade on rising oil prices and ahead of a key U.S. inflation report that could heavily influence the Federal Reserve’s policy outlook.

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

Investors are awaiting the report later on Tuesday after Fed Chair Jerome Powell and other policymakers said they are still not sure that interest rates are high enough to tame inflation.

Economists polled by Reuters expect U.S. headline consumer price inflation to have slowed to 3.3% in October from 3.7% in September, although the core inflation rate that strips out volatile components is not expected to change.

Saudi Arabia’s benchmark index (.TASI) gained 0.8%, with auto rental firm Lumi (4262.SE) gaining 2.4% and oil giant Saudi Aramco (2222.SE) up 0.3%.

Oil prices, often a catalyst for Gulf financial markets, were slightly higher after an OPEC report said market fundamentals remained strong.

OPEC on Monday blamed speculators for a drop in prices as it slightly raised its 2023 forecast for global oil demand growth and stuck to its relatively high 2024 prediction.

In Abu Dhabi, the index (.FTFADGI) added 0.1%.

The Qatari benchmark (.QSI) added 0.2%, helped by a 3.1% rise in Masraf Al Rayan (MARK.QA) and a 0.9% increase in petrochemical maker Industries Qatar (IQCD.QA).

Dubai’s main share index (.DFMGI), however, eased 0.2%, weighed down by a 1.4% fall in blue-chip developer Emaar Properties (EMAR.DU).

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