Mideast Stocks: Gulf Shares Muted on Weaker Corporate Earnings; US Inflation Eyed

Stock markets in the Gulf were subdued in early trade on Tuesday as investors assessed a raft of earnings reports, and remained cautious ahead of a key U.S. inflation reading.

U.S. consumer prices for July, due later in the day, could shape expectations for a September Federal Reserve rate cut. Traders are currently pricing in about a 90% probability of easing at the next meeting 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 traded in a narrow range as losses in materials, IT and consumer discretionary stocks offset gains in utilities, industry and communication shares.

Methanol Chemicals Co slumped 9.9% after the chemicals producer posted a second-quarter net loss. Bupa Arabia for Cooperative Insurance Co climbed 3.9% and Kingdom Holding added 1.4%. Investment company KHC reported a 6.1% dip in second-quarter net profit from the previous three months.

Dubai's benchmark stock index was down 0.1%, pressured by losses in real estate, industry and utilities sectors. Tolls operator Salik and Emirates Central Cooling fell 0.6% and 1.1% respectively.

The Abu Dhabi benchmark index was up 0.1%, aided by a 4.4% gain in ADNOC Logistics & Services, which reported a 14% increase in second-quarter net profit.

e7 Group slipped 2.6% after printing and packaging solutions provider posted an 82.1% drop in second quarter net profit.

The Qatari benchmark index gained 0.1%, supported by gains in real estate and communication stocks with AlRayan Bank adding 2% and Ezdan Holding Group rising 1.6%.