Most Gulf markets in red on US tariff worries, Powell’s comments

Most stock markets in the Gulf ended lower on Wednesday as investors remained cautious, given the uncertainty over U.S. import tariffs and the Federal Reserve Chair Jerome Powell signalling a patient path for rate cuts.

Donald Trump’s trade advisers were finalizing plans on Wednesday for the reciprocal tariffs the U.S. president has vowed to impose on every country that charges duties on U.S. imports, ratcheting up fears of a widening global trade war.

Saudi Arabia’s benchmark index fell 0.3%, hit by a 1.8% fall in Saudi Basic Industries Corp as the petrochemical maker traded ex-dividend.

Dubai’s main share index dropped 0.6%, weighed down by a 4% decline in sharia-compliant Dubai Islamic Bank, despite reporting a rise in annual profit.

The Dubai bourse snapped two sessions of gains, influenced by recent earnings releases, said Joseph Dahrieh, managing principal at Tickmill.

However, the Dubai bourse maintains the potential for further upside given its solid fundamentals and generally strong earnings releases this quarter, added Dahrieh.

In Abu Dhabi, the benchmark index nudged 0.2% higher, with Aldar Properties closing 1.1% higher, rising for a fourth consecutive session.

Most Gulf markets rise on buoyant earnings; Saudi eases

Aldar on Monday reported a fourth-quarter profit of 1.9 billion dirhams ($517.32 million), up 37% year-on-year.

However, Lulu Retail Holding plunged 9.6%, extending losses from the previous session, after a steep decline in quarterly profit.

In Qatar, the index was down 0.3%, with petrochemical firm Industries Qatar retreating 0.9%.

The U.S. Consumer Price Index (CPI) report, due at 1330 GMT, is now on investors’ radar.

Markets have been scaling back expectations for Fed rate cuts this year, largely expecting the U.S. central bank to hold rates steady at its March and May meetings.

On Tuesday, Powell said the economy is in a good place and the Fed isn’t rushing to cut interest rates further, but is prepared to do so if inflation drops or the job market weakens.

Outside the Gulf, Egypt’s blue-chip index added 0.3%.

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 SAUDI ARABIA     fell 0.3% to 12,386

 Abu Dhabi        rose 0.2% to 9,659

 Dubai            dropped 0.6% to 5,304

 QATAR            was down 0.3% to 10,595

 EGYPT            was up 0.3% to 29,662

 BAHRAIN          eased 0.4% to 1,892

 OMAN             lost 0.8% at 4,486

 KUWAIT           added 0.3% to 8,514

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