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Stock markets in the Gulf ended higher on Tuesday, rebounding from a global selloff on hopes that the U.S. might be willing to negotiate some of its heavy import tariffs.

Saudi Arabia’s benchmark index advanced 1%, extending gains from the previous session, led by a 1.9% rise in Al Rajhi Bank and a 4.7% jump in Elm Company.

On Sunday, the Saudi index had fallen 6.8%, its biggest one-day slide since the early days of the 2020 COVID-19 pandemic.

The Saudi bourse recovered for the second consecutive day after finding support levels, said Milad Azar, a market analyst at XTB MENA.

“However, a sustained general recovery would require fundamental changes, particularly regarding tariff risks and their potential economic impact.”

Dubai’s main share index climbed 1.9%, buoyed by a 1.3% gain in blue-chip developer Emaar Properties and a 2.2% leap in sharia-compliant lender Dubai Islamic Bank.

In Abu Dhabi, the index added 0.5%.

Most Gulf markets slide on fears of global recession

Oil prices — catalyst for the Gulf’s financial markets — steadied but remained near four-year lows as a recovery in equity markets was outweighed by recession fears exacerbated by trade conflicts.

The Qatari index rose 1.3%; Qatar Islamic Bank gained 2.5% and petrochemical maker Industries Qatar was up 2.3%.

Outside the Gulf, Egypt’s blue-chip index rose 0.6%, supported by a 7.1% jump in tobacco monopoly Eastern Company.

Egypt and France have signed a 7 billion euro ($7.66 billion) agreement to develop finance and operate a green hydrogen production facility, Egypt’s transportation ministry said.

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 SAUDI ARABIA    climbed 1% to 11,303
 Abu Dhabi       added 0.5% to 8,989
 Dubai           gained 1.9% to 4,890
 QATAR           advanced 1.3% to 9,897
 EGYPT           added 0.6% to 30,649
 BAHRAIN         was up 0.1% to 1,899
 OMAN            rose 0.9% to 4,261
 KUWAIT          jumped 3.1% to 8,302
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