Equities in the Gulf were up in early trading on Tuesday, ahead of a key U.S. inflation print later this week, while the Qatar index continued its upward momentum.

The Qatari benchmark index advanced 0.7%, extending its rally to a sixteenth session, lifted by gains in sectors such as energy, materials and finance stocks.

Qatar Islamic Bank rose 1.6% and Qatar Gas Transport added 1.3%.

Saudi Arabia's benchmark stock index was up 0.2%, after oscillating between gains and losses in early trade.

Saudi National Bank, the kingdom's largest lender, slipped 1.4% while United International Transportation Company , also known as Bugdet Saudi, advanced 4.2% after its shareholders approved the acquisition of AutoWorld, a vehicle leasing company.

Among other gainers, Methanol Chemicals rose 4.6% after the methanol derivatives producer signed a 20-year agreement to supply methanol to Saudi Aramco Total Refining and Petrochemical Company's (SATORP) Amiral project.

The Abu Dhabi benchmark index was up 0.2%, aided by a 1.4% gain in Abu Dhabi Commercial Bank and a 3.3% rise in Alef Education.

ADNOC Drilling gained 0.7% after the driller confirmed a new enhanced dividend policy that will see at least $4.8 billion distributed to shareholders between 2024 and 2028.

Dubai's benchmark stock index was little changed, with tolls operator Salik Company gaining 1.2% and Dubai Islamic Bank rising 0.9%, while blue-chip developer Emaar Properties slid 0.9%.

In the U.S., the personal consumption expenditures (PCE) price index is due on Friday. Softer data would likely reinforce market bets of a Federal Reserve rate cut as early as September, with futures currently pricing in a 65% chance.

Most Gulf currencies are pegged to the dollar, and any U.S. monetary policy change is usually followed by Saudi Arabia, the United Arab Emirates and Qatar.

(Reporting by Md Manzer Hussain; Editing by Sonia Cheema)