Major stock markets in the Gulf were mixed in early trade on Thursday due to cautious amid concerns over U.S. President Donald Trump’s tariffs threats and as the Federal Reserve’s dovish tone dampened risk appetite.
Trump has been making waves with his tariff announcements this week, targeting a broad range of imports, including pharmaceuticals, semiconductor chips, and lumber. The big one, though, is the impending tariff on autos, set to kick in as early as April 2.
These moves have investors on edge, fearing an all-out trade war. However, some analysts believe Trump’s aggressive stance is simply a negotiating tactic.
Minutes of the Fed’s last policy meeting showed Trump’s initial policy proposals raised concerns about higher inflation and affirmed a continued pause on rate cuts. That impacts monetary policy in the Gulf, where most currencies, including the riyal, are pegged to the dollar.
Saudi Arabia’s benchmark index (.TASI) nudged 0.1% higher, helped by a 4.4% rise in Etihad Etisalat Company (Mobily) (7020.SE), on course to extend its gains, following a significant increase in its annual profit. Mobily also proposed a higher cash dividend for the second half of the year.
In Abu Dhabi, the index (.FTFADGI) added 0.2%.
Oil prices – a catalyst for the Gulf’s financial markets – were little changed after rising to a near one-week high in the previous session, as an industry report showing a buildup in U.S. crude stockpiles weighed on sentiment.
Dubai’s main share index (.DFMGI) eased 0.2%, hit by a 0.5% drop in top lender Emirates NBD (ENBD.DU).
The Qatari benchmark (.QSI) lost 0.2%, with Qatar Fuel Company (QFLS.QA) retreating 4.2%.
Source: Reuters.com