Stock markets in the Gulf ended mixed on Thursday as investors monitored developments in U.S. tariff plans and the possible repercussions for global trade, ahead of key U.S. economic data due later in the day.
U.S. President Donald Trump has said he would impose reciprocal tariffs on every country that charges duties on U.S. imports, spurring concern over a widening global trade war and a possible acceleration of U.S. inflation.
Saudi Arabia’s benchmark index erased early losses to end flat.
Dubai’s main share index gained 0.3%, helped by a 3.9% rise in toll operator Salik Company.
In Abu Dhabi, the index closed flat, with food and drinks group Agthia plunging about 10%, the most on the index, despite reporting a bigger annual profit.
Oil prices, a catalyst for the Gulf’s financial markets, fell 1% as a potential peace deal between Russia and Ukraine continued to exert downward pressure, along with rising U.S. crude inventories.
The Qatari index gained 0.2%, with Qatar Islamic Bank rising 0.9%.
Data on Wednesday showed the U.S. consumer price index increased more than expected in January, reinforcing the Federal Reserve’s message that it was in no rush to resume rate cuts. Producer Price Index (PPI) data is due at 1330 GMT.
[Most Gulf markets in red on US tariff worries, Powell’s comments][1]
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 dollar.
Outside the Gulf, Egypt’s blue-chip index gained 1.1%, led by a 5.4% advance in tobacco monopoly Eastern Company.
Meanwhile, Egypt’s President Abdel Fatah al-Sisi won’t visit the White House if the agenda includes Trump’s plan to relocate Palestinians from Gaza, according to Egyptian security sources.
Trump’s plan to take over Gaza, displace 2 million Palestinians and create a “Riviera of the Middle East” has ignited Arab world outrage.
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SAUDI ARABIA ended flat at 12,385
Abu Dhabi was flat at 9,659
Dubai gained 0.3% to 5,319
QATAR added 0.2% to 10,619
EGYPT rose 1.1% to 29,997
BAHRAIN closed flat at 1,892
OMAN lost 0.2% to 4,478
KUWAIT rose 0.6% to 8,569
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[1]:
American Dollar Exchange Rate