Major Gulf equities fell in early trade on Tuesday, mirroring a fall in its Asian peers amid inflation fears, ahead of U.S. inflation data and central bank meetings in Europe and the United States.
The Reserve Bank of Australia raised interest rates by the most in 22 years and flagged more tightening to come as it battles to restrain surging inflation, stunning markets and sending the Aussie up, briefly.
The main stock index in Saudi Arabia retreated 0.5%, weighed down by banking stocks with Al Rajhi Bank losing 1.1% and the Riyad Bank dropping 1.5%.
Separately, Saudi Arabia's gross domestic product grew 9.9% in the first quarter, more than a flash estimate last month of 9.6%, an official data showed on Tuesday.
The Qatari index declined 0.6%, as the Gulf's biggest lender Qatar National Bank decreased 1.4% and Commercial Bank slid 2.3%.
Whereas, Gulf International Services soared 8% after the company announced an interim agreement with Manaya Holding Group for potential merger of its unit Amwaj with Shaqab.
In Abu Dhabi, the index edged down 0.1%, on track to extend its fifth straight session of losses.
Conglomerate International Holding Company eased 0.3% and petrochemical maker Borouge dropped 0.9%.
Dubai's main share index also fell 0.6%, with Emirates Integrated Telecommunications slipping 1.3% and Sharia lender Dubai Islamic Bank losing 0.8%.
(Reporting by Mohd Edrees in Bengaluru; Editing by Shailesh Kuber)