DUBAI: Most stock markets in the Gulf ended lower on Sunday as trade war jitters resurfaced following Donald Trump’s additional tariffs on Chinese imports.
On Friday after markets closed, Trump announced a 100 percent tariff increase on Chinese exports to the US and new export controls on all critical software, in response to China’s recent restrictions on rare earth mineral exports essential for tech and other industries.
Saudi Arabia’s benchmark index dropped 0.8 percent, hit by a 1.4 percent fall in Al Rajhi Bank and a 1.4 percent decrease in oil behemoth Saudi Aramco. The kingdom’s crude oil exports to China are set to fall in November to about 40 million barrels as refiners are expected to switch to cheaper spot supply from other Middle East producers, Reuters reported on Friday, citing several sources with knowledge of the matter.
In Qatar, the index declined 0.9 percent, dragged down by a 1.8 percent slide in Qatar Islamic Bank. Brent and US crude futures fell more than USD2 a barrel, or more than 3 percent, on Friday as US Trump’s threat to impose increased tariffs on China cast a shadow over the demand outlook in a market seen as oversupplied.
Outside the Gulf, Egypt’s blue-chip index concluded flat.
Meanwhile, S&P Global upgraded Egypt’s rating by a notch on Friday, citing ongoing reforms that have led to a sharp rebound in GDP growth, while Fitch highlighted the country’s fairly high growth potential and strong support from partners in its affirmation.