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Most major stock markets in the Gulf fell in early trade on Monday on market concerns that higher-than-expected inflation could delay cuts to high U.S. interest rates.
The Federal Reserve's favoured measure of inflation, the core personal consumption expenditures (PCE) price index, is due on Thursday and forecasts are for a rise of 0.4%.
Markets have already pushed the likely timing of the first Fed easing from May to June, which is currently priced at around a 70% probability. Futures imply a little more than three quarter-point cuts this year, compared to five at the start of the month.
Saudi Arabia's benchmark index eased 0.1%, on course to extend losses from the previous session, with Saudi Telecom Company dropping 1.2%.
Among other losers, oil giant Saudi Aramco was down 0.3%.
Oil prices - a catalyst for the Gulf's financial markets - have drifted lower as concerns about demand, particularly from China, have outweighed risks to supply from the Middle East.
Dubai's main share index fell 0.2%, hit by a 2% fall in toll operator Salik Company.
Most Gulf currencies are pegged to the dollar and any monetary policy change in the United States is usually mimicked by Qatar, the United Arab Emirates and Saudi Arabia. Union Properties advanced more than 5% after announcing a sale of land worth over 500 million dirhams ($136.15 million). The developer is also studying additional offers on its assets, worth more than 12 billion dirhams, in cash sale.
The index was flat in Abu Dhabi, while the Qatari benchmark eased 0.1%, a day after advancing 1% as the Gulf state plans to further expand gas production.
($1 = 3.6724 UAE dirham)
(Reporting by Ateeq Shariff in Bengaluru; Editing by Janane Venkatraman)