Most Gulf stock markets rose on Monday, supported by better-than-expected inflation data in the US and bolstered expectations of the Federal Reserve cutting interest rates in the new year.

Reuters said: A U.S. Commerce Department report showed prices in the U.S. fell for the first time in more than three-and-a-half years in November, leading to a sharp decline in the annual increase in inflation below the 3% mark. .

Monetary policy in the six Gulf Cooperation Council countries is generally guided by the decisions of the US Federal Reserve, as most of the region's currencies are pegged to the dollar. Gulf stock markets, and most emerging markets around the world, are affected by monetary policy decisions in the world's largest economy.

Saudi Arabia's main index rose 1.1%, shares of Al Rajhi Bank rose 2.6% and shares of Lumi Car Rental rose 1.8%.

Dubai's main index fell 0.1%, weighed down by a 0.9% drop in shares of Emaar Properties.

Qatar's main index rose as much as 0.5% to a seventh session high, with Qatar Islamic Bank posting 1% gains and Masraf Al Rayyan's shares up 2%.

Gulf stock markets are located in six Arab Gulf countries, namely Saudi Arabia, Kuwait, United Arab Emirates, Qatar, Bahrain and Oman. The Saudi Stock Exchange is the largest stock market in the Arabian Gulf, with a market capitalization approaching $3 trillion, followed by the Dubai Stock Market, which exceeds one trillion dollars.

Gulf stock markets play an important role in the economies of the Arab Gulf states, as they provide financing for local companies, contribute to attracting foreign investments and are an indicator of the performance of the Gulf economies. Gulf stock markets are characterized by a heavy reliance on oil, which makes them vulnerable to price fluctuations.

Outside Gulf bourses, an Egyptian index of leading shares rose 1.6%, led by shares of Commercial International Bank, which climbed 3.6%.

(Reuters, Al-Arabi Al-Jadeed)