Business
Gulf markets end mixed after Trump's China tariff move
Gulf markets end mixed after Trump's China tariff move
About this update from Al Rajhi Bank
By Ateeq Shariff Gulf stocks ended mixed on Monday amid renewed U.S.-China trade tensions and expectations of U.S. Federal Reserve interest-rate cuts, while oil prices rebounded from five-month lows. U.S. President Donald Trump on Friday threatened to impose 100% tariffs on Chinese goods by November 1, in response to China's curbs on rare-earth elements and equipment. Beijing defended its measures on Sunday as justified but stopped short of imposing additional levies on U.S. goods.Oil rose as investors focused on potential talks between the U.S. and Chinese presidents that could ease tensions between the world's two largest economies.Dubai's main share index DFM:DFMGI fell 0.5%, hit by a 1.8% fall in top lender Emirates NBD DFM:EMIRATESNBD and a 0.7% decrease in blue-chip developer Emaar Properties DFM:EMAAR.Dubai-based classifieds firm Dubizzle Group said on Monday it plans to sell a 30.34% stake in an initial public offering (IPO) on the Dubai Financial Market.In Abu Dhabi, the index ADX:FADGI eased 0.2%.Saudi Arabia's benchmark index TADAWUL:TASI rose 0.9%, helped by a 0.9% gain in Al Rajhi Bank TADAWUL:1120 and a 0.9% rise in Saudi Aramco TADAWUL:2222. Aramco's maximum sustainable crude capacity of 12 million barrels per day can be maintained for a year at no additional cost, chief executive Amin Nasser said on Monday. The Saudi stock market was higher today, recovering from yesterday's correction, said Milad Azar Market Analyst at XTB MENA. The correction followed a regional downturn triggered by risk-off sentiment from fresh U.S.-China tariff escalation and a fall in oil prices to a five-month low, he added. The Qatari index QSE:GNRI ended flat. On the monetary policy front, traders are now pricing in a 25-basis-point cut each in October and December by the Federal Reserve, with a 97% and 91% chance, respectively.Policy shifts in the U.S., where most Gulf currencies are pegged to the dollar, often sway regional markets.Outside the Gulf, Egypt's blue-chip index EGX:EGX30 added 0.1%.Saudi ArabiaTADAWUL:TASI gained 0.5% to 11,592Abu DhabiADX:FADGI fell 0.1% to 10,106 DubaiDFM:DFMGI dropped 0.5% to 5,953Qatar QSE:GNRI was flat at 10,836EgyptEGX:EGX30 up 0.1% to 37,410BahrainBAHRAIN:BHBX added 0.3% to 1,971Oman(.MSX30) was flat at 5,193 Kuwait(.BKP) gained 0.7% to 9,342