Most major stock markets in the Gulf fell in early trade on Tuesday as investors mulled over China cutting key policy rates, the world’s second largest economy, with the Saudi index on course to extend losses from the previous session.

China’s central bank unexpectedly cut rates for the second time in three months on Tuesday, in a fresh sign that the authorities are ramping up monetary easing efforts to boost a sputtering economic recovery.

Saudi Arabia’s benchmark index eased 0.2%, on course to extend losses from the previous session, with Saudi Awwal Bank retreating 1.5%.

Separately, Saudi Arabia’s annual inflation rate eased for a second consecutive month to 2.3% in July from 2.7% in June, government data showed on Tuesday.

In Qatar, the index dropped 0.5%, as most of the stocks on the index were in negative territory including petrochemical maker Industries Qatar, which was down 1.9%.

Most Gulf markets in red as China woes linger, oil falls

However, Qatar Insurance advanced 3.6% after reporting a steep rise in first-half profit.

The Gulf’s largest insurer by market value reported a net profit of 324.5 million riyals ($89.07 million) for the period ending June 30, up from 96.8 million riyals year ago.

In Abu Dhabi, the index eased 0.1%. Dubai’s main share index was flat.