Most Gulf equities ended lower on Monday, led by the Qatar index, as investors turned cautious while awaiting developments from a meeting between the U.S. and Ukraine presidents, and an annual Federal Reserve conference at Jackson Hole.
Friday's U.S. data showed July retail sales rose as expected, but weaker consumer confidence and softer factory output suggested tariffs were weighing on parts of the economy, clouding the Fed's rate path. Traders are pricing an about 85% chance of a 25-basis-point cut on September 17, with further easing by year-end.
Monetary policy shifts in the U.S. have a significant impact on Gulf markets, where most currencies are pegged to the dollar.
Meanwhile, U.S. President Donald Trump said Ukraine should abandon hopes of regaining annexed Crimea or joining NATO, ahead of a meeting with Ukraine's Volodymyr Zelenskiy and European leaders in Washington.
The Qatari benchmark index (.QSI), opens new tab was down for a second day and fell 0.6% as investors took profits after an earnings-fuelled rally, with all constituents in the red. Qatar National Bank (QNBK.QA), opens new tab declined 0.9% and Industries Qatar (IQCD.QA), opens new tab fell 1.5%.
Saudi Arabia's benchmark stock index (.TASI), opens new tab slipped 0.1%, ending a two-session rise, with most stocks lower. ACWA Power (2082.SE), opens new tab fell 1.5%, while Saudi Arabian Mining (1211.SE), opens new tab and Umm Al Qura for Development and Construction (4325.SE), opens new tab each lost 1.1%. Umm Al Qura said it sold a land plot for 145.1 million riyals.
The Abu Dhabi benchmark index (.FTFADGI), opens new tab eased 0.1%, its ninth straight decline and longest losing streak since February 2024. Abu Dhabi Islamic Bank (ADIB.AD), opens new tab fell 1.6% and First Abu Dhabi Bank (FAB.AD), opens new tab slipped 1.3%.
"GCC markets are exhibiting signs of consolidation after a period of strong gains following the end of the Q2 earnings season," said Milad Azar, market analyst at XTB MENA.
Dubai's benchmark stock index (.DFMGI), opens new tab rose for a third straight session and inched up 0.1%, supported by gains in finance and real estate shares. Emaar Properties (EMAR.DU), opens new tab advanced 1% and Emirates NBD(ENBD.DU), opens new tab, the emirate's largest lender, added 1.2%.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab fell 0.4%, pressured by a 3.8% drop in a tobacco maker Eastern Company(EAST.CA), opens new tab and a 1.3% decline in Talaat Moustafa(TMGH.CA), opens new tab. Arabian Cement (ARCC.CA), opens new tab jumped 5.6% after second-quarter group profit more than tripled.
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