Most Gulf markets in red on US tariff worries, Powell's comments | Reuters

Most Gulf markets in red on US tariff worries, Powell's comments | Reuters

Most stock markets in the Gulf ended lower on Wednesday as investors remained cautious, given the uncertainty over U.S. import tariffs and the Federal Reserve Chair Jerome Powell signalling 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 (.TASI), opens new tab fell 0.3%, hit by a 1.8% fall in Saudi Basic Industries Corp (2010.SE), opens new tab as the petrochemical maker traded ex-dividend.

Dubai's main share index (.DFMGI), opens new tab dropped 0.6%, weighed down by a 4% decline in sharia-compliant Dubai Islamic Bank (DISB.DU), opens new tab, despite reporting a rise in annual profit.

The Dubai bourse snapped two sessions of gains, influenced by recent earnings releases, said Joseph Dahrieh, managing principal at Tickmill.

However, the Dubai bourse maintains the potential for further upside given its solid fundamentals and generally strong earnings releases this quarter, added Dahrieh.

In Abu Dhabi, the benchmark index (.FTFADGI), opens new tab nudged 0.2% higher, with Aldar Properties (ALDAR.AD), opens new tab closing 1.1% higher, rising for a fourth consecutive session.

Aldar on Monday reported a fourth-quarter profit of 1.9 billion dirhams ($517.32 million), up 37% year-on-year.

However, Lulu Retail Holding (LULU.AD), opens new tab plunged 9.6%, extending losses from the previous session, after a steep decline in quarterly profit.

In Qatar, the index (.QSI), opens new tab was down 0.3%, with petrochemical firm Industries Qatar (IQCD.QA), opens new tab retreating 0.9%.

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.

Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab added 0.3%.