Gulf shares muted on lower corporate earnings; US inflation in focus
U.S. consumer prices, scheduled for Tuesday, will offer cues on the Federal Reserve's path for rate cuts. A hotter-than-expected reading could dampen expectations for near-term interest rate reductions. Traders are currently pricing in about a 90% probability of easing in September and at least one more cut by year-end.
Monetary policy shifts in the U.S. have a significant impact on Gulf markets, where most currencies are pegged to the dollar.
Saudi Arabia's benchmark stock index slipped 0.3%, with most constituents in the red. Saudi Advanced Industries Co slumped 7% after the investment firm posted a second-quarter net loss, compared to profit a year earlier.
MBC Group slid 3.7% after reporting a 38% fall in quarterly net profit.
Among other losers, Almunajem Foods Co dropped 10% after the food products company reported a 51% year-on-year decline in quarterly net profit on Sunday.
Dubai's benchmark stock index was down 0.1%, with communication, real estate and financial stocks retreating. Emirates Central Cooling dropped 1.1% and bellwether Emaar Properties fell 0.7%.
Tolls operator Salik and state-run utility Dubai Electricity And Water Authority gained 1.1% and 0.4% respectively. DEWA reported an over-25% jump in second-quarter profit on Friday.
In Abu Dhabi, the benchmark index shed 0.1%, pressured by a 0.4% drop in Aldar Properties and a 4.3% loss in Ghitha Holding.
Dana Gas, however, rose 1.6% after the natural gas company reported a 1% increase in half-year net profit. However, its second-quarter profit dipped 11.8%.
The Qatari benchmark index fell 0.3%, with Qatar National Bank, the region's largest lender, down 0.3% and telecoms services provider Ooredoo 1.3% lower.
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