Gulf stock markets closed mixed on Monday, as early optimism from easing U.S.-China trade tensions was tempered by subdued corporate earnings and falling oil prices.
Economic negotiators from Washington and Beijing reportedly finalized a draft framework for approval by Presidents Donald Trump and Xi Jinping later this week, easing concerns that tariff disputes between the world’s top two oil consumers could weigh further on global growth.
In Saudi Arabia, the benchmark index (.TASI) edged up 0.2% to 11,620, supported by a 1.8% rise in Al Rajhi Bank (1120.SE) and a 1.7% recovery in Banque Saudi Fransi (1050.SE), which snapped four sessions of losses. However, Mobile Telecommunication Company Saudi Arabia (7030.SE), or Zain Saudi, slipped 1.6% despite posting a 2% increase in third-quarter profit.
Abu Dhabi’s index (.FTFADGI) managed a marginal 0.1% gain to close at 10,192 after erasing earlier advances, while Dubai’s main share index (.DFMGI) fell 0.4% to 6,041, dragged by a 1.6% decline in Emirates NBD Bank (ENBD.DU).
Oil prices—an essential driver for Gulf markets—fell more than 1% earlier in the session amid skepticism that the preliminary trade deal would meaningfully boost demand. Markets were also reassured after Iraq’s oil minister confirmed that a recent oilfield fire had not disrupted exports.
Elsewhere in the region, Qatar’s index (.QSI) lost 0.2% to 10,912, weighed down by a 2.1% slide in Qatar Electricity and Water Company (QEWC.QA) following weaker nine-month earnings. Bahrain’s (.BAX) market stood out with a 1.9% jump to 2,045, while Oman’s (.MSX30) rose 0.7% to 5,432. Kuwait’s benchmark (.BKP) dropped 0.6% to 9,394.
Outside the Gulf, Egypt’s blue-chip index (.EGX30) inched up 0.2% to 38,162, lifted by a 1.6% increase in Talaat Moustafa Group Holding (TMGH.CA).
The broader outlook remained cautious as investors awaited the U.S. Federal Reserve’s policy decision later this week. Markets widely expect the Fed to trim rates by 25 basis points, a move reinforced by softer-than-expected inflation data released on Friday. Given that most Gulf Cooperation Council (GCC) currencies are pegged to the U.S. dollar, regional markets remain directly exposed to shifts in U.S. monetary policy.
Exchange Rate: $1 = 3.7504 riyals.
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