By Ateeq Shariff
Jan 15 (Reuters) - Most stock markets in the Gulf edged higher in early trade on Wednesday ahead of U.S. consumer price data that could potentially shift the monetary policy outlook in the world's largest economy.
The upcoming data holds significant implications for markets, with forecasts predicting a modest 0.2% increase in the core measure. A strong reading of 0.3% or more could see the relentless selling in global stocks and bonds resume.
Overnight, U.S. producer price data for December was surprisingly tame, with the core measure flat in the month.
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.
Saudi Arabia's benchmark index .TASI rose 0.3% in choppy trade, with the country's top lender Saudi National Bank 1180.SE gaining 1.8%.
The kingdom's annual inflation rate fell slightly to 1.9% in December from 2% in November, according to government data released on Wednesday.
Dubai's main share index .DFMGI added 0.2%, helped by a 0.8% increase in blue-chip developer Emaar Properties EMAR.DU.
In Abu Dhabi, the index .FTFADGI was up 0.1%.
Oil prices - a catalyst for the Gulf's financial markets - rose, trimming losses from the previous day, as the focus turned back to potential supply disruptions from sanctions on Russian tankers, though gains were capped as the market awaited more clarity on their impact.
The Qatari index .QSI fell 0.2%, hit by a 0.8% fall in the Gulf's biggest lender Qatar National Bank QNBK.QA.
(Reporting by Ateeq Shariff in Bengaluru; Editing by Janane Venkatraman)
((AteeqUr.Shariff@thomsonreuters.com; +918061822788;))
