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Most stock markets in the Gulf edged higher in early trade on Thursday as investors assessed the monetary policy and inflation outlook in the world's largest economy.
Traders responded to a U.S. inflation print that was in line with expectations by ramping up bets on a Federal Reserve rate cut next month.
Markets are now pricing in an 83% chance of a 25 basis-point rate cut from the Fed next month, up from about 59% a day ago, according to the CME FedWatch tool.
Monetary policy in the six-member Gulf Cooperation Council (GCC) is usually guided by the Fed's decisions, as most regional currencies are pegged to the U.S. dollar.
Dubai's main share index .DFMGI added 0.2%, with blue-chip developer Emaar Properties EMAR.DU advancing 1.3%. Toll operator Salik SALIK.DU gained 1.1% after reporting a higher third-quarter net profit.
In Abu Dhabi, the index .FTFADGI rose 0.4%, with conglomerate International Holding IHC.AD climbing 1%.
However, Lulu Retail Holdings LULU.AD - Middle East's biggest hypermarket chain operator - dropped 2.5% in market debut.
The Qatari index .QSI was up 0.4%, with petrochemical maker Industries Qatar IQCD.QA gaining 1.3%.
Saudi Arabia's benchmark index .TASI fell 0.9%, weighed down by a 4% slide in Acwa Power Company 2082.SE, whereas Saudi Telecom Company (STC) 7010.SE retreated more than 3%.
The kingdom's sovereign wealth fund PIF has raised 3.86 billion riyals ($1.03 billion) from selling a 2% stake in telecoms firm STC, PIF said on Thursday, as it seeks to raise funds for the Gulf country's economic diversification programme.
($1 = 3.7570 riyals)
(Reporting by Ateeq Shariff in Bengaluru; Editing by Eileen Soreng)