Gulf stocks steady as strong earnings offset US tariff jitters
Despite global jitters, strong results from regional heavyweights and steady oil prices helped offset external headwinds.
Saudi Arabia's benchmark index (.TASI), opens new tab edged 0.2% higher, on course to snap its longest downturn in nearly two years, with financials driving the gains.
Saudi National Bank (1180.SE), opens new tab - the country's biggest lender by assets - gained 1.5% and Al Rajhi Bank (1120.SE), opens new tab, the largest sharia-compliant bank, jumped over 1% after their strong second-quarter results lifted sentiment across the banking sector.
However, the petrochemical giant SIPCHEM (2310.SE), opens new tab fell 3.7% after posting a rare loss, breaking a five-year streak of profitability.
Dubai's benchmark index (.DFMGI), opens new tab eased 0.1%, pressured by broad-based declines as investors locked in gains after a recent multi-year rally.
Meanwhile, Air Arabia (AIRA.DU), opens new tab surged 5.1% to a fresh record high after securing a bid to operate a new Saudi low-cost national airline, set to launch by 2030.
Abu Dhabi Index (.FTFADGI), opens new tab posted a decline ahead of key upcoming earnings as investors looked for cues on the market's next direction.
Qatar's stock index (.QSI), opens new tab added 0.1%, nearing a two-year peak, led by a 1.5% rise in Commercial Bank (COMB.QA), opens new tab.
Among other gainers, Qatar International Islamic Bank (QIIB.QA), opens new tab advanced 1.4% on a year-on-year rise of 5.2% in its six-month profit.
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US-Japan trade deal guarantees lowest tariff rates for chips, pharma, Japanese official says
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UK equities mixed as investors assess slew of corporate earnings, US-EU trade deal
July 29 (Reuters) - London's main stock indexes were mixed on Tuesday as investors assessed a spate of mixed corporate updates as well as the fallout from the newly signed U.S.-EU trade deal. The benchmark FTSE 100 (.FTSE), opens new tab rose 0.4% as of 0934 GMT, while the domestically focused midcap FTSE 250 index (.FTMC), opens new tab was down 0.3%. Healthcare stocks (.FTNMX201030), opens new tab led the sectoral gains, up 1.8%, with AstraZeneca (AZN.L), opens new tab rising 2.8% after the drugmaker beat second-quarter revenue and profit expectations. Chemical stocks (.FTNMX552010), opens new tab lost 2.5%, dragged down by Croda International (CRDA.L), opens new tab, which fell 5.1% after the chemical company reported first-half sales below estimates. Industrial miners (.FTNMX551020), opens new tab lost 1%, tracking lower copper prices. Glencore (GLEN.L), opens new tab and Anglo American (AAL.L), opens new tab fell 2.4% and 1.2% respectively. Among other corporate updates, Games Workshop (GAW.L), opens new tab surged 6.3%, to top the FTSE 100 index, after the miniature wargames maker reported a nearly 30% jump in annual pre-tax profit. Entain (ENT.L), opens new tab rose 1.4% after the company's U.S. sports-betting joint venture with MGM Resorts (MGM.N), opens new tab called BetMGM raised its full-year 2025 revenue and core earnings forecast. Inchcape (INCH.L), opens new tab lost 9.6%, top loser on the FTSE 250 midcap index, after the car distributor reported a 4% drop in first-half adjusted pre-tax profit at constant currency. Greggs (GRG.L), opens new tab fell 4.9% after reporting a 14% fall in first-half profit. A survey showed British shop prices rose by the most in more than a year in the 12 months to July and food prices grew more strongly. The Bank of England is expected to cut borrowing costs on August 7 for the fifth time since August last year. Meanwhile, investors weighed the impact of a new 15% levy on most European Union goods, which is significantly higher than pre-2025 levels. Ahead of the August 1 tariff deadline, U.S. President Donald Trump said a blanket 15% to 20% "world tariff" rate would be extended toward trading partners who do not negotiate separate trade deals with the U.S. Top U.S. and Chinese economic officials resumed their trade talks for a second day in Stockholm to resolve economic disputes, while seeking to extend the previous tariff truce by three months.
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China stake in CK Hutchison port sale could ease Beijing pressure but US geopolitical risks remain
HONG KONG/NEW YORK, July 29 (Reuters) - The proposed inclusion of Chinese shipping giant COSCO in Hong Kong conglomerate CK Hutchison's contentious global ports sale is a potential win for Beijing in a strategic sector, but the deal is far from final and could face resistance from Washington, sources and analysts say. Since the deal was announced on March 4 to sell 43 of CK Hutchison's ports in 23 countries, including two along the Panama Canal, to a consortium led by U.S. firm BlackRock, (BLK.N), opens new tab and Italian billionaire Gianluigi Aponte's family-run shipping company MSC, it has sparked a firestorm of criticism from China. While the U.S. government might oppose the inclusion of state-run COSCO over perceived geopolitical risks posed by Chinese influence, bringing in the shipping giant could provide a more level playing field rather than one company being dominant, said a person with knowledge of the deal. The complex deal would require approval from around 50 jurisdictions involved, and it would take at least two years for the process to be completed, sources and analysts said. There was no immediate response from the White House, COSCO and CK Hutchison to Reuters' requests for comment. At a time of festering global trade tensions between China and the U.S., the deal showcases the growing rivalry between both sides for maritime influence in the strategic commercial shipping sector that has been dominated by China in recent decades. U.S. President Donald Trump had earlier called for the removal of Chinese ownership in the Panama Canal - now used for more than 40% of U.S. container traffic valued at $270 billion annually. Following months of pressure from Beijing, including Chinese state media lambasting the move as a betrayal, and various Chinese government departments saying they would conduct a legal review, CK Hutchison announced on July 28 that a Chinese investor was being courted. It also said changes to the composition of the consortium and structure of the transaction would be necessary to secure regulatory approval. Two sources with knowledge of the matter told Reuters the investor was COSCO ( opens new tab - a shipping and ports conglomerate that is now one of the world's dominant, vertically integrated marine transportation firms. While any stake by COSCO is not yet clear, a triparty agreement with BlackRock and MSC would alleviate China's national security concerns and have its blessing, the sources said. "The potential acquisition of Hutchison Ports is driven by the strategic need to secure key port resources amid global competition and U.S.-China tensions," JPMorgan wrote in a research report. The report also noted that while the inclusion of COSCO would "relieve some concerns by the Chinese government, thus boosting the likelihood of a green-light scenario", not all ports in the original agreement might be included. COSCO is requesting a bigger stake while the other parties in the consortium are keen to keep it a minority, the sources said. China's Foreign Ministry spokesperson Guo Jiakun told reporters on Monday in response to a question on the deal that Beijing "will conduct lawful regulation, firmly safeguard national sovereignty, security and development interests, and uphold justice and fairness in the market." A deal involving COSCO would be a "loud reaffirmation of China's geopolitical influence across the global maritime trade and transport sector, and of its effective leverage in trade negotiations with the U.S.," Isaac Kardon, Senior Fellow for China Studies at the Carnegie Endowment for International Peace, told Reuters. "Beijing's disapproval clearly forced Hutchison to back off and change tack — and not merely in the optics of the transaction, but in its basic structure and national ownership." Should the deal proceed, it would be a crucial off-ramp for CK Hutchison, with the Americans wary of COSCO's growing maritime heft that could undermine U.S. national security. There could also be further blowback amid ongoing and complex bilateral trade talks. Some analysts say the Panama ports, in particular, will be a focus for the Trump administration, and could be taken out of the transaction to meet U.S. strategic interests. "The inclusion of this behemoth Chinese central state-owned enterprise as an owner seems like it should be a non-starter for the Trump administration seeking to strip Chinese control and restore some kind of American suzerainty over the Canal Zone," added Kardon. The CK Hutchison assets up for sale span the globe, including ports in Rotterdam in the Netherlands, Barcelona in Spain, Felixstowe in the United Kingdom, Mexico, Poland and the Bahamas - enlarging Beijing's global shipping networks and options at a time of great trade and tariff uncertainties. "At the moment they (Beijing) are in a place generally where they want to assert themselves and say, hey, don't mess with us," said Andrew Cainey, a senior associate fellow with the defence and security thinktank RUSI (Royal United Services Institute) in London. "If the U.S. were to come back and object to it, China could try to block the deal or demand more (from CK Hutchison)."
