Most stock markets in the Gulf ended higher on Tuesday after U.S. President Donald Trump suggested he might grant exemptions on auto-related levies already in place.
Trump said on Monday he was considering a modification to the 25% tariffs on auto and auto parts imports from Mexico, Canada and other places. He said car companies "need a little bit of time because they're going to make 'em here."
The U.S. recently exempted smartphones, computers and certain electronics from Trump's "reciprocal" tariffs, but probes into semiconductor imports have intensified, with Trump set to announce tariff rates soon.
Saudi Arabia's benchmark index (.TASI), opens new tab rose 0.2%, with Al Rajhi Bank (1120.SE), opens new tab rising 0.5% and telecoms firm Saudi Telecom Company (7010.SE), opens new tab increasing 2.3%.
The market has solid fundamentals conducive to recovery should sentiment improve, although trade tensions and low oil prices persist as notable risks, said Milad Azar, market analyst at XTB MENA.
Dubai's main share index (.DFMGI), opens new tab closed 0.4% higher, with blue-chip developer Emaar Properties (EMAR.DU), opens new tab advancing 2.1%.
In Abu Dhabi, the index (.FTFADGI), opens new tab added 0.6%.
Oil prices — a catalyst for the Gulf's financial markets — inched down after the International Energy Agency followed OPEC in slashing its oil demand forecast, though price falls were limited by Trump's suggestion of new tariff exemptions.
The Qatari index (.QSI), opens new tab climbed 0.7%, led by a 1.3% gain in Qatar Islamic Bank (QISB.QA), opens new tab.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab closed flat.
Egypt's central bank is expected to cut overnight interest rates by 200 basis points on Thursday, but analysts say tariff uncertainty is likely to make it cautious despite plunging Egyptian inflation, a Reuters poll shows.
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