Most major stock markets in the Gulf rose in early trade on Tuesday ahead of U.S. inflation data due later in the day, signalling investors’ relatively upbeat outlook on talks Washington and major trading partners.
U.S. President Donald Trump signalled he was open to discussions on tariffs after his weekend threat to impose 30% duties on imports from the European Union and Mexico from August 1.
Japanese Prime Minister Shigeru Ishiba, meanwhile, is arranging to meet U.S. Treasury Secretary Scott Bessent on Friday, the Yomiuri newspaper reported on Tuesday.
Investors are also awaiting U.S. consumer price data for June, due on Tuesday, and will monitor for any upward pressure on prices from tariffs that might influence U.S. Federal Reserve interest rate decisions.
The Fed’s actions have a significant impact on the Gulf region’s monetary policy, as most regional currencies are pegged to the U.S. dollar.
Dubai’s main share index gained 0.7%, led by a 2.7% rise in top lender Emirates NBD and a 1.4% increase in blue-chip developer Emaar Properties.
In Abu Dhabi, the index climbed 0.7%, with Abu Dhabi Commercial Bank jumping 6%.
Most Gulf stocks subdued as Trump steps up tariff threats
The lender, which is the Gulf country’s third-largest by asset volume, posted second-quarter net profit of 2.32 billion dirham ($631.65 million), also exceeding analysts’ consensus estimates, according to data compiled by LSEG.
The Qatari index added 0.1%, helped by a 0.4% rise in petrochemical maker Industries Qatar.
However, Doha Bank fell 0.7%, despite reporting an increase in first-half profit.
Saudi Arabia’s benchmark index eased 0.3%, hit by a 0.6% fall in oil giant Saudi Aramco.
Oil prices – a catalyst for the Gulf’s financial markets – fell after Trump’s lengthy 50-day deadline for Russia to end the Ukraine war and avoid sanctions eased immediate supply concerns.
American Dollar Exchange Rate