DUBAI: Gulf stock markets ended mixed on Monday, as indications of easing US-China trade tensions that supported risk sentiment coincided with corporate earnings reports that provided limited uplift to investor confidence and weak oil prices.
Top Chinese and US economic officials hashed out the framework of a deal for US President Donald Trump and Chinese President Xi Jinping to decide on later this week, easing fears that tariffs and export curbs between the world’s top two oil consumers could dent global growth.
Saudi Arabia’s benchmark index gained 0.2 percent, with Al Rajhi Bank 1.8 percent. Banque Saudi Fransi (BSF) climbed 1.7 percent, snapping four sessions of losses.
However, Mobile Telecommunication Company Saudi Arabia , popularly known as Zain Saudi, declined 1.6 percent, following a 2 percent increase in third-quarter profit.
Abu Dhabi’s index gave up early gains to close 0.1 percent higher.
Oil prices - a catalyst for the Gulf’s financial markets - edged lower and fell over 1 percent earlier in the session, amid scepticism that a US-Chinese trade deal framework would boost oil demand and after Iraq’s oil minister confirmed an oilfield fire had not affected the OPEC member’s oil exports.
Meanwhile, the US Federal Reserve is widely expected to cut rates by a quarter percentage point at its meeting on Wednesday, a view supported by Friday’s softer-than-expected inflation report.
Most Gulf Cooperation Council countries have their currencies pegged to the US dollar, exposing the region to the direct impact of monetary tightening in the world’s largest economy.
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