Most Gulf markets retreat ahead of vote on Trump’s tax bill

Most stock markets in the Gulf gave up early gains to close lower on Tuesday, as investors booked profits and turned cautious ahead of a U.S. Senate vote on President Donald Trump’s landmark tax and spending bill.

The proposed legislation, which faces internal Republican opposition, is expected to add $3.3 trillion to the nation’s debt pile.

Saudi Arabia’s benchmark index dropped 0.4%, weighed by a 2.3% fall in Saudi Arabian Mining Company.

Among other losers, Savola slipped 2.2% after announcing its CEO had stepped down by mutual agreement as part of a strategic overhaul.

Citing trade sources, Reuters reported that Saudi Arabia, the world’s biggest oil exporter, may raise its August crude prices for Asian buyers to a four-month high, following a surge in spot prices during the Iran-Israel conflict and on strong summer demand.

Dubai’s main share index eased 0.2%, snapping a six-day rally after hitting a 17-year high earlier in the session, hit by a 0.7% fall in blue-chip developer Emaar Properties.

Meanwhile, Trump continued to pressure the U.S. Federal Reserve, sending Chair Jerome Powell a list of global interest rates with handwritten commentary suggesting U.S. rates should fall between Japan’s 0.5% and Denmark’s 1.75%.

Gulf bourses end mixed; Dubai at 17-year high

In Abu Dhabi, the index finished 0.3% lower.

Oil prices were slightly higher as investors assessed expectations that OPEC+ will announce an output hike for August at an upcoming meeting as well as trade negotiations.

The Qatari index closed 0.5% lower, extending losses from the previous session when it ended a six-day winning streak, with all sectors in negative territory.

Qatar’s economy expanded 3.7% in the first quarter, up from 1.5% a year earlier, according to government data issued on Tuesday.

Outside the Gulf, Egypt’s blue-chip index lost 0.5%, with Beltone Financial Holding declining 6.7%.

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 SAUDI ARABIA     dropped 0.4% to 11,122

 ABU DHABI        slipped 0.3% to 9,929

 DUBAI            eased 0.2% to 5,693

 QATAR            fell 0.5% to 10,698

 EGYPT            dropped 0.5% to 32,707

 BAHRAIN          was flat at 1,944

 OMAN             added 0.3% to 4,514

 KUWAIT           declined 0.6% to 9,133

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