Most stock markets in the Gulf were trading lower early on Monday as U.S.-China trade tensions continue to weigh on sentiment, with U.S. President Donald Trump accusing China of violating a bilateral deal on tariff roll back.
Investor sentiment rattled on Trump’s plans on doubling worldwide steel and aluminium tariffs to 50%, adding to the unpredictability of global trade tensions. The heightened tariffs are set to go into effect this week.
S&P 500 futures eased 0.5% and Nasdaq futures lost 0.6%.
Meanwhile, oil prices rebounded by more than $1 a barrel after OPEC+ increased output in July by the same amount as it did in the previous two months. This came as a relief to investors who were expecting a larger increase. The group decided to raise output by 411,000 barrels per day in July.
Brent crude futures was up 2.33% to $64.24 a barrel, as of 0626 GMT.
Analysts, however, said that low levels of fuel inventories in the U.S. have stoked supply concerns ahead of expectations for an above-avaerage hurricane season.
Markets in the UAE were subdued, with Dubai’s main share index down 0.17% in early trade and Abu Dhabi’s benchmark index falling 0.21%. The Abu Dhabi index is set for a second staright session of losses.
Most Gulf markets in red on US tariff uncertainty
In Dubai, utility services provider Dubai electricity and Water Authority was the top loser, down 1.47%.
The banking sector also faced losses, with Ajman Bank down 1.33% and Emirates NBD trading 1.12% lower.
Bucking the trend, Saudi Arabia’s benchmark stock index was up 0.44%. Saudi Print and Packaging Company was the top gainer on the index, up 5.66%.
Qatar’s benchmark stock index was down 0.56% in early trade, with Dukhan Bank down 0.71% and Islamic bank Masraf Al Rayan declining 0.62%.
Comments
Comments are closed for this article.