DUBAI: Most Gulf markets ended lower on Wednesday as investors weighed US trade policy developments and signs that tariffs may be fuelling inflation, while awaiting cues on the Federal Reserve’s interest rate policy.
US consumer prices rose at the fastest pace in five months in June, raising concerns that tariffs were beginning to pressure inflation.
On Tuesday, President Donald Trump said letters notifying smaller countries of their tariff rates would be sent soon.
Saudi Arabia’s benchmark index dropped 0.5%, hit by a 0.4% fall in Al Rajhi Bank. Oil behemoth Saudi Aramco fell 0.7%.
About 217.4 million shares changed hands, compared with an average of 314.3 million shares over the previous 10 sessions.
Oil prices - a catalyst for the Gulf’s financial markets - fell by about 1%, as signs of stronger Chinese crude consumption were outweighed by investor caution about the wider economic impact from US tariffs.
Dubai’s benchmark index jumped 1% to 5,974 dirhams, having crossed the mark for the first time in nearly 17.5 years.
Financial stocks led gains with a 3.7% jump in Emirates NBD after concluding 3.9 billion dirhams in syndicated loans for Dubai Metro’s Blue Line Project.
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