Gulf stocks settle varied on tariff uncertainty, rise in oil prices
Trump accused China of violating a bilateral deal to roll back tariffs and announced a 50% tariff on steel and aluminium, rattling international trade. The tariffs are set to come into effect starting June 4.
Oil prices - a catalyst for markets in the Gulf - jumped by more than 4% after the OPEC+ group decided to keep output increases in July at the same level as the prior two months. .
Brent crude futures was up 3.97%, at $65.27 a barrel by 1220 GMT. The Organization of the Petroleum Exporting Countries and its allies, decided on Saturday to raise output by 411,000 barrels per day in July.
S&P 500 futures fell 0.5%, while Nasdaq futures lost 0.7%, suggesting a retreat at the opening bell later.
Saudi Arabia's benchmark stock index (.TASI), opens new tab settled 0.23% higher with packaging provider United Carton Industries (1323.SE), opens new tab up 4.52% and industrial company Savola Group (2050.SE), opens new tab up 4.66%.
"Sector performance was mixed but generally supportive, notably from the banking sector, which had experienced significant losses recently. Energy stocks also contributed positively, buoyed by higher oil prices," said Joseph Dahrieh, Managing Principal at Tickmill.
Al Rajhi Bank (1120.SE), opens new tab, Saudi Arabia's second-largest lender by assets, settled up 1.24%.
The UAE stock markets presented a mixed picture, with Dubai's main share index (.DFMGI), opens new tab settling flat and Abu Dhabi's, benchmark index (.FTFADGI), opens new tab finishing down 0.39%. The Abu Dhabi index recorded a second straight session of losses.
"The Dubai stock market was relatively stable after two previous sessions of losses. Momentum could remain intact and the market could continue to rise," said Dahrieh.
In Dubai, food and groceries delivery provider Talabat Holding (TALABAT.DU), opens new tab was down 1.39%, while Amlak Finance (AMLK.DU), opens new tab rose by 14.55%.
Qatar's benchmark stock index (.QSI), opens new tab settled 0.16% lower. Commercial Bank (COMB.QA), opens new tab was the top loser on the index, down 1.78%. The index touched its lowest levels since May 1.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab fell 0.54%, extending losses for a second consecutive session.
Real estate companies took a hit, with Orascom Development Egypt (ORHD.CA), opens new tab down 3.2% and Emaar Misr for Development (EMFD.CA), opens new tab down 3.01%.
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