Gulf Markets Fall as U.S.-China Trade Tensions Rise

Post by : Bianca Suleiman

Most stock markets in the Gulf region were lower early on Monday because of ongoing trade problems between the U.S. and China. U.S. President Donald Trump said China is not following a deal to reduce tariffs, which made investors worried.

Trump also plans to double the tariffs on steel and aluminum from 25% to 50% soon. This increase adds more uncertainty to global trade. The new higher tariffs will start this week.

In the U.S., stock market futures were down as well. The S&P 500 futures dropped 0.5%, and Nasdaq futures went down by 0.6%.

At the same time, oil prices went up by more than $1 per barrel. This happened because OPEC+ decided to increase oil production by 411,000 barrels per day in July, the same amount as in the past two months. Investors were happy with this smaller increase because they expected a bigger one.

Brent crude oil prices rose by 2.33%, reaching $64.24 per barrel early Monday.

However, some experts are worried about low fuel stocks in the U.S. They say there might be supply problems because this hurricane season is expected to be stronger than usual.

In the UAE, the stock markets were quiet. Dubai’s main stock index dropped by 0.17%, and Abu Dhabi’s index fell by 0.21%. Abu Dhabi’s market was expected to lose for the second day in a row.

In Dubai, the Dubai Electricity and Water Authority was the biggest loser, down 1.47%. Banks also lost value, with Ajman Bank down 1.33% and Emirates NBD down 1.12%.

On the other hand, Saudi Arabia’s stock market was up 0.44%. The Saudi Print and Packaging Company led the gains, going up 5.66%.

Qatar’s stock market was down 0.56%, with Dukhan Bank falling 0.71% and Islamic bank Masraf Al Rayan down 0.62%.

Overall, trade worries and tariff increases kept many investors cautious, while oil prices rose after OPEC+ decided on a smaller oil supply increase.