Major Gulf markets subdued on US tariff worries, Powell's comments
Business
Major Gulf markets subdued on US tariff worries, Powell's comments
(Reuters) - Major stock markets in the Gulf were subdued in early trade on Wednesday as investors remained cautious given the uncertainty over US 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 US president has vowed to impose on every country that charges duties on US 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).
Trump's team is finalizing plans to impose tariffs on every country that charges duties on U.S. imports, but how wide could the trade war get?
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.
