Mideast Stocks: Major Gulf markets subdued on US tariff worries, Powell's comments
Major stock markets in the Gulf were subdued in early trade on Wednesday as investors remained cautious given the uncertainty over U.S. import tariffs and Federal Reserve Chair Jerome Powell's signal of a patient path for rate cuts.
Donald Trump's trade advisers were finalizing plans on Wednesday for the reciprocal tariffs the U.S. president has vowed to impose on every country that charges duties on U.S. imports, ratcheting up fears of a widening global trade war.
Saudi Arabia's benchmark index eased 0.3%, hit by a 1.6% fall in petrochemical maker Saudi Basic Industries Corp .
Elsewhere, oil giant Saudi Aramco lost 0.3%.
Oil prices - a catalyst for the Gulf's financial markets - edged down as an industry report showed an increase in U.S. crude stockpiles and tariff worries weighed on sentiment, though stronger refining margins limited losses.
Dubai's main share index dropped 0.5%, weighed down by a 3.8% slide in sharia-compliant Dubai Islamic Bank , despite reporting a rise in annual profit.
In Abu Dhabi, the index edged 0.1% higher, helped by a 0.5% increase in Aldar Properties. The company was set to gain for a fourth consecutive session.
On Monday, Aldar reported a 37% year-on-year rise in fourth-quarter profit of 1.9 billion dirhams ($517.32 million).
Lulu Retail Holding plunged 9.6%, extending losses from the previous session, after a steep decline in quarterly profit.
The Qatari benchmark fell 0.3%, with telecoms firm Ooredoo losing 1.9%.
The U.S. Consumer Price Index (CPI) report, due at 1330 GMT, is now on investors' radar.
Markets have been scaling back expectations for Fed rate cuts this year, largely expecting the U.S. central bank to hold rates steady at its March and May meetings.
On Tuesday, Powell said the economy is in a good place and the Fed isn't rushing to cut interest rates further, but is prepared to do so if inflation drops or the job market weakens.
($1 = 3.6728 UAE dirham)
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The National
5 hours ago
- The National
Trump says Putin could participate in Iran nuclear deal talks
US President Donald Trump spoke by phone with Vladimir Putin on Wednesday, with discussions focused on the war in Ukraine as well as the Russian leader's potential participation in nuclear deal talks with Iran. "President Putin suggested that he will participate in the discussions with Iran and that he could, perhaps, be helpful in getting this brought to a rapid conclusion," Mr Trump said in a post on his Truth Social platform. Mr Trump added that the two leaders agreed Iran could not have a nuclear weapon. "Time is running out on Iran's decision pertaining to nuclear weapons, which must be made quickly!" he said in the post. Iran and the US have been engaged in negotiations on a new deal that would put limits on its nuclear programme in exchange for sanctions relief. The US wants Iran to cease enriching uranium under a possible new deal, but Tehran says its programme is for civilian purposes and it has the right to continue.
Khaleej Times
6 hours ago
- Khaleej Times
Safe-haven gold rises on weaker dollar, simmering global uncertainty
Gold prices rose on Wednesday, buoyed by a softer dollar and persistent geopolitical tensions across multiple fronts, keeping investors alert amid a range-bound market awaiting fresh catalysts. Spot gold rose 0.9% to $3,381.32 an ounce, as of 10:43 a.m. ET (1143 GMT). U.S. gold futures were up at $3,406.80. The U.S. dollar index fell 0.5%, making gold cheaper for buyers holding other currencies. "There is considerable geopolitical uncertainty with Russia-Ukraine, Iran, Syria and China, driving people to buy gold. Market sentiment remains quite high, and although traders may not expect gold to rise as quickly, there is still plenty of upside," Daniel Pavilonis, senior market strategist at RJO Futures, said. Russia is concerned about rising tensions around Iran and the risk of the situation slipping into a full-scale confrontation, Russian Foreign Ministry spokeswoman Maria Zakharova said. However, "the market is just kind of sideways right now and we need some bigger signals, meaning an escalation geopolitically, that would open the path to buying more gold as an inflationary hedge," Pavilonis added. U.S. President Donald Trump on Wednesday said his Chinese counterpart Xi Jinping is tough and "extremely hard to make a deal with," just days after accusing China of violating an agreement to roll back tariffs and trade restrictions. In addition, Washington doubled tariffs on steel and aluminum imports and urged trading partners to submit their "best offers" to avoid more import levies starting in early July. Data on Wednesday showed U.S. private employers added the fewest workers in over two years in May, though this likely underrepresents the gradual easing amid uncertainty from the Trump administration's tariffs. All eyes now turn to Friday's U.S. non-farm payrolls report, expected to provide critical insight into the Federal Reserve's policy direction. Fed officials have maintained a cautious stance amid ongoing trade tensions and economic unpredictability. Gold, a safe-haven asset during times of political and economic uncertainty, tends to thrive in a low-interest-rate environment. Elsewhere, spot silver was steady at $34.50 an ounce, platinum rose 1.3% to $1,088.31 and palladium lost 0.9% to $1,000.94.
Al Etihad
7 hours ago
- Al Etihad
Gaming fans stoked for Nintendo's Switch 2 'mega launch' on Thursday
4 June 2025 19:29 TOKYO (AFP)With shops planning midnight launch parties after a run on pre-orders, Nintendo releases the Switch 2 on Thursday, hoping to score record early sales for a games the Japanese company has its work cut out to match the overall success of the Switch, which became a must-have during the pandemic with hit games such as Animal a bigger screen and more processing power, the Switch 2 is an upgrade to its predecessor, which has sold 152 million units since it came out in 2017 -- making it the third best-selling console of all Japan, Nintendo's online store had 2.2 million pre-order applications for the Switch for Nintendo include uncertainty over US trade tariffs and whether it can convince enough people to pay the high price for its new Switch 2 costs $449.99 in the US, more than Switch's launch price of $299.99. Both are hybrid consoles which can connect to a TV or be played on the Switch 2 games such as Donkey Kong Bananza and Mario Kart World -- which allows players to go exploring off-grid -- are also more expensive than existing Switch titles. Pre-order CancellationsRetailers in the US, Europe and other major markets are also gearing up for a rush of excited fans, with some stores opening at midnight to welcome them. Supply pressures have even forced retailers to cancel orders, with Britain's Game saying it is "working hard to reinstate as many affected pre-orders as possible".Nintendo forecasts it will shift 15 million Switch 2 consoles in the current financial year, roughly equal to the original in the same period after its Switch 2 "is priced relatively high" compared to its predecessor, so it "will not be easy" to keep initial momentum going, the company's president Shuntaro Furukawa said at a financial results briefing in Switch 2 has eight times the memory of the first Switch, and its controllers, which attach with magnets, can also be used like a desktop computer functions allowing users to chat as they play online and temporarily share games with friends could also be a big draw for young audiences used to watching game the US, Nintendo delayed pre-orders for the Switch 2 by two weeks as it assessed the impact from President Donald Trump's aggressive duties on trading partners around the said in May that "hardware for North America is mainly produced in Vietnam" where Trump is threatening a hefty so-called "reciprocal" levy of 46 tariff uncertainty could in fact push consumers to buy a Switch 2 sooner, because they are worried that the price could go the stakes are high for Nintendo. While the Super Mario maker is diversifying into theme parks and hit movies, around 90 percent of its revenue still comes from the Switch business, analysts say.
