Gulf shares muted on tariff uncertainty, Fed rate cut in focus

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By Md Manzer Hussain Most stock markets in the Gulf were muted in early trade on Wednesday as investors weighed uncertainty over U.S. trade deals with a July tariff deadline fast approaching, while U.S. Federal Reserve Chair's comments kept expectations of a rate cut alive.The Abu Dhabi benchmark index ADX:FADGI fell 0.2%, dragged down by a 1.4% drop in RAK Properties ADX:RAKPROP and a 0.4% dip in Aldar Properties ADX:ALDAR. The emirate's blue-chip developer Aldar has acquired warehousing and industrial real estate assets in the Al Dhafra region of Abu Dhabi from Waha Capital for 530 million dirhams, it said on Tuesday.Dubai's benchmark stock index DFM:DFMGI was down 0.3%. Union Properties DFM:UPP slipped 1.8% and Emirates NBD DFM:EMIRATESNBD, the emirate's largest lender, lost 0.9%.The Qatari benchmark index QSE:GNRI dropped 0.3% with Qatar Gas Transport QSE:QGTS sliding 1.6% and Qatar National Bank QSE:QNBK, the region's largest lender, shedding 0.3%.Saudi Arabia's benchmark stock index TADAWUL:TASI inched down 0.1%. National Shipping Company TADAWUL:4030 dropped 3.7% and Saudi Arabian Mining Company TADAWUL:1211 slipped 1%. Saudi Arabia's flagship mining company Ma'aden said it had completed the acquisition of the entire stake owned by AWA Saudi in MBAC and Alcoa Saudi in Maaden Aluminium Company.However, Saudi oilfield services firm Arabian Drilling TADAWUL:2381 advanced 5.5% after the driller said it has secured 1.37 billion riyals ($365.33 mln) in contract extensions for four rigs with Saudi Aramco.U.S. Federal Reserve Chair Jerome Powell on Tuesday reiterated the U.S. central bank's plans to "wait and learn more" before lowering interest rates.Market expectations for a July cut inched up to 21.2% from 18.6% in the prior session, according to CME's FedWatch Tool.The Fed's decisions have a significant impact on the Gulf region's monetary policy, as most currencies there are pegged to the U.S. dollar.

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