(Corrects para 3 to say Retal Urban Development fell not rose.)
Feb 21 (Reuters) - Most Gulf stock markets fell in early
trade on Tuesday, in line with Asian peers and subdued oil
prices, after U.S. economic data prompted bets that the Federal
Reserve would get more aggressive with interest rate hikes to
battle inflation.
Traders are awaiting the minutes of the latest Fed meeting,
due on Wednesday, after recent data on core inflation raised the
risk of interest rates remaining higher for longer.
Saudi Arabia's benchmark index dropped 0.5%, and is
on course to extend losses for a third session, weighed down by
a 0.6% fall in Retal Urban Development Co and a 2.9%
decrease in Riyad Bank .
The market is now pricing U.S. interest rates to peak at
5.30% in July and remain above 5% by the end of the year, moving
away from expectations of deeper rate cuts this year. Most Gulf Cooperation Council countries, including Qatar,
Saudi Arabia and the United Arab Emirates have their currencies
pegged to the U.S. dollar and follow the Fed's policy moves
closely.
In Qatar, the index dropped 0.5%, with Qatar Islamic
Bank losing 1.4%.
Oil prices - which fuels growth in Gulf economies - fell as
fears that a global economic slowdown would reduce fuel demand
prompted investors to take profits on the previous day's gains. Dubai's main share index lost 0.4%, hit by a 1.8%
fall in blue-chip developer Emaar Properties .
The Abu Dhabi index retreated 0.4%.
(Reporting by Ateeq Shariff in Bengaluru; Editing by Rashmi
Aich)
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