Major stock markets in the Gulf fell in early trading on Wednesday amid uncertainty over shifting U.S. trade policies and concerns about the economic impact of the U.S.-China trade war.
Trump has ratcheted up tariffs on Chinese goods to eye-watering levels, prompting Beijing to slap retaliatory duties on U.S. imports in an intensifying trade war between the world’s two biggest economies that markets fear will lead to a global recession.
On Tuesday, Trump ordered a probe into potential new tariffs on all U.S. critical minerals imports, on top of reviews into pharmaceutical and chip imports. Beijing is continuing to play hardball, having reportedly ordered airlines to suspend deliveries of Boeing aircraft.
Saudi Arabia’s main share index dropped 0.4%, weighed down by a 0.6% fall in oil giant Saudi Aramco and a 1.3% decrease in Riyad Bank.
Separately, United Carton Industries Company on Tuesday announced plans to float a 30% stake on the Saudi Exchange’s main market, in what would be the first initial public offering since trade tensions sparked a sell-off in the kingdom’s equity markets.
Most Gulf markets end higher on potential US tariff exemptions
Dubai’s main share index fell 0.7%, with top lender Emirates NBD retreating 2.3% and a blue-chip developer Emaar Properties declining 1.3%.
In Abu Dhabi, the index was down 0.4%.
Oil prices - a catalyst for the Gulf’s financial markets - edged lower, as shifting U.S. tariff policies fuelled uncertainty, prompting traders to weigh the potential impact of the U.S.-China trade war on economic growth and energy demand.
The Qatari index eased 0.2%, hit by a 0.6% fall in Qatar Islamic Bank.
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