DUBAI: Most stock markets in the Gulf ended higher on Tuesday after data showed a smaller than expected rise in core US inflation and talks between Washington and major trading partners continued.
US President Donald Trump signalled he was open to discussions on tariffs after his weekend threat to impose 30% duties on imports from the European Union and Mexico from August 1.
US consumer prices picked up in June, likely marking the start of a long-anticipated tariff-induced increase in inflation that has kept the Federal Reserve cautious about resuming its interest rate cuts. However, the increase was in line with expectations and the core reading rose less than forecast.
The Fed’s actions have a significant impact on the Gulf region’s monetary policy, as most regional currencies are pegged to the US dollar.
Dubai’s main share index advanced 1%, buoyed by a 5.2% surge in top lender Emirates NBD and a 1.8% increase in blue-chip developer Emaar Properties.
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