Mideast Stocks: Gulf bourses drop ahead of US inflation data

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Stock markets in the Gulf declined on Tuesday, led by the Dubai index, as investors assessed the likely path of interest rates from the U.S. Federal Reserve ahead of key inflation data due later in the week.

Dubai's benchmark index was down 0.8%, after gaining for three straight sessions, with most of its constituents posting losses. Blue-chip developer Emaar Properties dropped 1.6% and Dubai Islamic Bank slid 1.2%, while Emirates NBD , the emirate's largest lender, lost 0.9%.

The Qatari benchmark index ended 0.7% lower, down for the second consecutive session, with all sectors in the red. Qatar Gas Transport and Qatar's Commercial Bank slid 1.5% each, while Masraf Al Rayan fell 5.3%. But Qatar National Bank, the region's largest lender, gained 0.6%.

Saudi Arabia's benchmark index slipped 0.6%, extending its losses to a third straight session. Al Rajhi Bank, the world's largest Islamic lender, and Saudi National Bank, the kingdom' largest lender, dropped 0.7% and 1.1%, respectively. Middle East Pharmaceutical Industries and Saudi Arabian Mining, down 3.8% and 1.2%, respectively, were among other losers. The healthcare services provider Mouwasat Medical Services , however, gained 8.2%, the sharpest intraday rise in a year.

In Abu Dhabi, the benchmark index was little changed, with Aldar Properties slipping 1% and conglomerate Alpha Dhabi down 0.3%, while Abu Dhabi Islamic Bank gained 1.1%. The crucial February reading of the Personal Consumption Expenditures (PCE) price index, the Fed's preferred inflation gauge, is due on Friday. A hot reading for the PCE index could dent market optimism around early rate cuts.

Most Gulf currencies are pegged to the dollar, and any U.S. monetary policy change is usually mimicked by Saudi Arabia, the United Arab Emirates and Qatar.

Outside the Gulf, Egypt's blue-chip index snapped its three-session winning streak and ended 1% lower, with all sectors in the negative territory. Commercial International Bank slipped 1.3% and El Sewedy Electric lost 4%.