Saudi Arabia’s stock market closed lower on Sunday after US economic data stoked fears the Federal Reserve will act more aggressively to curb inflation.

Most Gulf Cooperation Council countries, including Qatar, Saudi Arabia and the United Arab Emirates have their currencies pegged to the US 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 benchmark index in Saudi Arabia dropped 0.5%, dragged down by a 2.1% slide in Retal Urban Development Co and a 0.9% decrease Al Rajhi Bank.

Major Gulf bourses mixed as oil prices fluctuate

On Friday, oil - a catalyst for the Gulf’s financial markets - settled down $2 a barrel, ending the week markedly lower, as traders worried future US interest rate hikes could cut energy demand and evidence mounted fuel supplies are ample.

Outside the Gulf, Egypt’s blue-chip index declined 0.9%, with most of the index’s stocks were in negative territory, including Fawry For Banking Technology and Electronic Payment, which was down 3.1%.

Egyptian International Pharmaceutical Industries Co, which is not part of the index, shed more than 5% after shareholders decided to delay a capital increase through a rights issue.

In Qatar, the index bucked the trend to finish 0.7% higher, led by a 3.4% rise in the Gulf’s biggest lender Qatar National Bank.

Markets in Kuwait and Oman were closed for a holiday

SAUDI ARABIA fell 0.1% to 9,473

QATAR gained 0.7% to 10,716

EGYPT lost 0.9% to 17,327

BAHRAIN added 0.1% to 1,937