Most Gulf markets gain as Trump retreats on Fed pressure
Most stock markets in the Gulf ended higher on Wednesday, after U.S. President Donald Trump said he had no plans to fire Federal Reserve Chair Jerome Powell and hinted at lower tariffs for China.
On Tuesday, Trump backed off from threats to fire Powell after days of intensifying criticisms of the central bank chief for not cutting interest rates.
The president also reiterated that he wanted a deal with China, following which tariffs would not be anywhere near 145%, and said he would set the terms of the deal if Beijing did not enter talks.
Saudi Arabia's benchmark index finished 0.8% higher, led by a 3.6% rise in ACWA Power Company and a 2.5% increase in Saudi Telecom Company.
Meanwhile, the International Monetary Fund on Tuesday lowered its 2025 GDP growth forecast for Saudi Arabia, while flagging headwinds for the broader region, including a more gradual resumption of oil production.
Dubai's main share index advanced 1.4%, buoyed by a 3.6% jump in blue-chip developer Emaar Properties.
Elsewhere, Emirates NBD Bank climbed 2.5%, extending gains for a third session.
In the previous session, ENBD - Dubai's top lender - reported net profit of 6.2 billion dirhams for the first quarter, beating analysts' expectations of about 5.1 billion dirhams.
Gulf markets end mixed on tariff concerns
Elsewhere, Emirates Integrated Telecommunications Company (du) closed 0.6% higher. The company on Tuesday announced a 2 billion-dirham ($544.5 million) hyper-scale data centre deal with Microsoft MSFT.O.
The Abu Dhabi index concluded 0.7% higher.
The Qatari index climbed 1%, with the Gulf's biggest lender Qatar National Bank rising 0.9%.
Outside the Gulf, Egypt's blue-chip index jumped 2.6%, as most of its constituents were in positive territory including Commercial International Bank, which was up 2.9%.
---------------------------------------- SAUDI ARABIA rose 0.8% to 11,681 Abu Dhabi up 0.7% to 9,324 Dubai leapt 1.4% to 5,205 QATAR advanced 1% to 10,237 EGYPT rose 2.6% to 31,640 BAHRAIN eased 0.3% to 1,892 OMAN was flat at 4,290 KUWAIT added 0.5% to 8,437 ----------------------------------------
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Express Tribune
2 hours ago
- Express Tribune
US imposes new sanctions on Iran, targeting 10 individuals and 27 entities
Listen to article The US has issued a new round of Iran-related sanctions targeting 10 individuals and 27 entities, including at least two companies it said were linked to Iran's national tanker company, the US Treasury Department said on Friday. The sanctions, which target Iranian nationals and some entities in the United Arab Emirates and Hong Kong, were announced as US President Donald Trump's administration is working to get a new nuclear deal with Tehran. Treasury's Office of Foreign Assets Control added Ace Petrochem FZE, and Moderate General Trading LLC, both registered in the UAE, to its Specially Designated Nationals List, freezing any of their US assets. OFAC said they are both linked to the state-owned National Iranian Tanker Company which is under US sanctions for exporting oil. Talks between Iran and the US that aim to resolve a decades-long dispute over Tehran's nuclear ambitions have been stuck over disagreements about uranium enrichment. Iran's mission to the United Nations in New York did not immediately respond to a request for comment.
Business Recorder
5 hours ago
- Business Recorder
Oil prices headed for rebound this week as US-China trade talks resume
LONDON: Oil prices steadied on Friday and were on track for their first weekly gain in three weeks after U.S. President Donald Trump and Chinese leader Xi Jinping resumed trade talks, raising hopes for growth and stronger demand in the world's two largest economies. Brent crude futures fell 9 cents, or 0.1%, to $65.25 a barrel by 1210 GMT. U.S. West Texas Intermediate crude lost 12 cents, or 0.2%, to $63.25. On a weekly basis, both benchmarks were on track to settle higher after declining for two straight weeks. Brent has advanced 2.2% this week, while WTI is trading 4.1% higher. China's official Xinhua news agency said trade talks between Xi and Trump took place at Washington's request on Thursday. Trump said the call had led to a 'very positive conclusion,' adding the U.S. was 'in very good shape with China and the trade deal.' Canada also continued trade talks with the U.S., with Prime Minister Mark Carney in direct contact with Trump, according to Industry Minister Melanie Joly. The oil market continued to swing with news on tariff negotiations and data showing how trade uncertainty and the impact of the U.S. levies are flowing through into the global economy. Oil eases after US data shows large builds in fuel stocks 'The potential for increased U.S. sanctions in Venezuela to limit crude exports and the potential for Israeli strike on Iranian infrastructure add to upside risks for prices,' analysts at BMI, a Fitch affiliate, said in a note on Friday. 'But both weaker demand for oil and increased production from both OPEC+ and non-OPEC producers will add to downside price pressures in the coming quarters.' Top exporter Saudi Arabia cut its July crude prices for Asia to near two-month lows. That was a smaller price reduction than expected after OPEC+ agreed to ramp up output by 411,000 barrels per day in July. The kingdom had been pushing for a bigger output hike, part of a broader strategy to win back market share and discipline over-producers in OPEC+, which groups the Organization of the Petroleum Exporting Countries and allies including Russia. 'The market looks balanced in 2Q/3Q on our estimates as oil demand rises in summer and peaks in July-August, matching supply increases from OPEC+,' HSBC said in a note. 'Thereafter, accelerated OPEC+ hikes should tip the market into a bigger 4Q25 surplus than previously forecasted,' the bank added.
Business Recorder
7 hours ago
- Business Recorder
Russian central bank cuts key rate by 1 percentage point to 20%
MOSCOW: The Russian central bank cut its key interest rate by one percentage point to 20% on Friday, saying economic growth is cooling down and inflation is slowing. 'Current inflationary pressures, including underlying ones, continue to decline. While domestic demand growth is still outstripping the capabilities to expand the supply of goods and services, the Russian economy is gradually returning to a balanced growth path,' the bank said in a statement. A Reuters poll had predicted that the central bank would keep the key rate on hold. It had been at 21% since last October to curb inflation in the overheated economy, which is focused on the needs of the military fighting in Ukraine. As a result, Russia's economic growth rate fell to 1.5% year-on-year in the first four months of 2025, compared to 4.3% last year, prompting sharp criticism of central bank governor Elvira Nabiullina. Consumer prices have risen by 3.39% since the start of the year, compared to 3.88% in the same period last year, while the annualised inflation rate fell below 10% in May after peaking at 10.34% in March. The central bank forecasts inflation this year at 7% to 8% and economic growth at 1% to 2%. The Economy Ministry is more optimistic, predicting growth of 2.5%. Russia central bank says current account surplus in January-April at $21.1bn The strengthening of the rouble, which has rallied by about 40% against the dollar since the start of the year, has aided the central bank in its fight against inflation by making imported goods cheaper. Its rise has been largely thanks to U.S. President Donald Trump's efforts to bring Russia and Ukraine to the negotiating table. But most analysts agree that without any sign of a breakthrough in the talks, the rouble is waiting for a trigger to start falling. 'Tight monetary policy has a particularly strong effect on the decrease in prices for non-food goods, including through the rouble appreciation,' the central bank said. Inflationary expectations among households, an important gauge monitored by the central bank, rose for a second month in a row in May to a level last observed around the time of the last rate hike in October. Some analysts have linked the rise in inflationary expectations to a planned mid-year nationwide increase in payments for electricity, gas, water, and communal services for households, suggesting that the regulator might ignore the gauge this time. Food inflation, with prices for staples like potatoes tripling since last year due to a poor harvest, has severely affected Russia's poor. The harvest outlook for this year will heavily influence the central bank's thinking. 'As for food products and services, inflationary pressures remain high,' the bank said. The tight monetary policy, with the key rate at its highest level since the early 2000s and also the highest among major economies in the BRICS group, has made loans and debt financing, and therefore investment, inaccessible for many Russian firms. The central bank counters this by saying that its research shows enterprises in most sectors make enough profits to finance their investments and that the situation even in vulnerable sectors, such as construction, does not pose systemic risks.
