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Gulf stock markets rose in early trade on Wednesday ahead of a crucial U.S. inflation report that would likely influence how soon the Federal Reserve would end its aggressive interest rate hikes.
Saudi Arabia's benchmark index gained 0.2%, after two sessions of losses, helped by a 0.9% rise in Dr Sulaiman Al-Habib Medical Services.
After data showed a resilient U.S. labour market, emboldening bets of a 25 basis point hike at the Fed's next meeting in May, investor attention is firmly on the March inflation report due later in the day.
Most Gulf Cooperation Council countries, including Saudi Arabia, the United Arab Emirates and Qatar, have their currencies pegged to the U.S. dollar and follow the Fed's policy moves closely, exposing the region to a direct impact from monetary tightening in the world's largest economy.
The U.S. government will release its stockpile data at 10:30 a.m. (1430 GMT) on Wednesday.
Dubai's main share index gained 0.5%, with blue-chip developer Emaar Properties advancing 1.6%.
In Abu Dhabi, the index added 0.2%.
Oil prices - a key catalyst for the Gulf's financial markets - edged up as the market waited for U.S. inflation data.
In addition to the inflation data, the market is waiting for more clarity on oil demand and supply with monthly reports from the Organization of the Petroleum Exporting Countries (OPEC) and the International Energy Agency due on Thursday and Friday respectively.
The Qatari index was up 0.3%, on track to extend gains from the previous session, with Ezdan Holding putting on 2.8%.
(Reporting by Ateeq Shariff in Bengaluru; Editing by Rashmi Aich)