Business
Most Gulf bourses fall on US tariff concerns, weaker oil
Most Gulf bourses fall on US tariff concerns, weaker oil
About this update from Al Rajhi Bank
By Amna Mariyam Most Gulf stock indexes dipped on Tuesday, as investors worried about fading prospects of the European Union's trade deal with the United States ahead of a looming tariff deadline, with weak oil prices offsetting strong corporate earnings.The EU is exploring broader counter-measures against the U.S. as prospects of an acceptable trade agreement with Washington wane, according to EU diplomats.U.S. President Donald Trump's imposition of tariffs around the world risks hurting global economic growth, and with it oil consumption.Saudi Arabia's benchmark index TADAWUL:TASI retreated 1.3%, after snapping its longest downturn in nearly two years in the previous session as broad sector declines and weaker oil prices outweighed upbeat corporate earnings. Al Rajhi Bank TADAWUL:1120 dropped 1% and oil giant Saudi Aramco TADAWUL:2222 decreased 0.5%.Oil prices declined for a third consecutive session on concerns that a brewing trade war between major crude consumers, the U.S. and the EU, will curb fuel demand growth by reducing economic activity.But Etihad Etisalat TADAWUL:7020 rose 1.9% after posting a 25% rise in second-quarter profit, while Saudi Automotive Services TADAWUL:4050 gained 1.5% following a more-than-twofold-jump in quarterly earnings.Elsewhere, shares of Sport Clubs TADAWUL:6018 surged 24% on their market debut. Saudi Exchange allows 30% fluctuation limit for newly-listed stocks during their first three days of trading.Dubai's main share index DFM:DFMGI eased 0.3%, marking the third straight session of losses as investors remained cautious ahead of key earnings and locked in profits following a multi-year rally.Index heavyweight Dubai Islamic Bank DFM:DIB dropped 1.2% while budget carrier Air Arabia DFM:AIRARABIA fell over 3%, ending a five-session winning streak.In Abu Dhabi, the index ADX:FADGI was under pressure as a wave of earnings releases this week kept many investors on the sidelines.Qatar's stock index QSE:GNRI reversed early losses to finish 1.1% higher, reaching its highest level in more than two and a half years, as nearly all sectors advanced.Banking stocks led the advance, supported by strong earnings. Qatar Islamic Bank QSE:QIBK soared 6%, rising for a fourth straight session after reporting upbeat results.Outside the Gulf, Egypt's blue-chip index EGX:EGX30 declined 1%, pulling back from a record high.SAUDI ARABIATADAWUL:T...