Gulf bourses drop; Egypt extends decline

Stock markets in the Gulf fell on Sunday, led by the Saudi index, after the U.S. Federal Reserve Chair Powell indicated the latest inflation data did not undermine the central bank's baseline outlook.

Saudi Arabia's benchmark index was down for a second straight session and dropped 1.3%, with almost all sectors in the red.

ACWA Power  fell 3.5% and Saudi National Bank, the kingdom's largest lender, lost 1.5%.

Among other losers, Middle East Pharmaceutical Industries and Al Rajhi Bank , the world's largest Islamic lender, slid 7.8% and 1% respectively.

Meanwhile, the index gained 3.6% on a quarterly basis.

The Qatari benchmark index dropped for a fifth straight session and ended 1% lower with almost all sectors in the negative territory.

The latest U.S. inflation data is "along the lines of what we would like to see," Fed Chair Jerome Powell said on Friday in comments that appeared to keep the central bank's baseline for interest rate cuts this year intact.

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

Outside the Gulf, Egypt's blue-chip index extended its losses to a fourth straight session and lost 2.5% to 26,883, lowest levels in more than two months.