(Reuters) -Major stock markets in the Gulf fell in early trade on Monday amid fresh U.S. tariff threats, although the losses were limited as investors are accustomed to President Donald Trump’s policy swings.
Trump on Saturday said he would impose a 30% tariff on most imports from the EU and Mexico from August 1, even as they are locked in long negotiations.
The European Union said it would extend a suspension of countermeasures to U.S. tariffs until early August and continue to press for a negotiated settlement, though Germany’s finance minister called for firm action if the levies went ahead.
Saudi Arabia’s benchmark index eased 0.2%, hit by a 0.4% fall in Al Rajhi Bank.
However, ACWA Power Co advanced more than 1%. The firm signed power purchase agreements on Sunday for clean energy projects with a capacity of 15 gigawatts and investments worth around $8.3 billion, the Saudi state news agency (SPA) said.
Dubai’s main share index dropped 0.3%, with sharia-compliant lender Dubai Islamic Bank declining 0.9% and toll operator Salik Company losing 0.7%.
In Abu Dhabi, the index lost 0.3%.
Investors now await the U.S. inflation data for June, due on Tuesday, for more cues on the Federal Reserve’s interest rate path. Markets are currently pricing in just over 50 basis points worth of easing by December. [FEDWATCH]
The Fed’s decisions have a significant impact on the Gulf region’s monetary policy, as most regional currencies are pegged to the U.S. dollar.
The Qatari index decreased 0.5%, weighed down by a 0.8% slide in petrochemical maker Industries Qatar.
(Reporting by Ateeq Shariff in Bengaluru; Editing by Vijay Kishore)
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