Gulf stocks ended mixed on Monday amid renewed U.S.-China trade tensions and expectations of U.S. Federal Reserve interest-rate cuts, while oil prices rebounded from five-month lows.
U.S. President Donald Trump on Friday threatened to impose 100% tariffs on Chinese goods by November 1, in response to China's curbs on rare-earth elements and equipment. Beijing defended its measures on Sunday as justified but stopped short of imposing additional levies on U.S. goods.
Oil rose as investors focused on potential talks between the U.S. and Chinese presidents that could ease tensions between the world's two largest economies.
Dubai's main share index (.DFMGI), opens new tab fell 0.5%, hit by a 1.8% fall in top lender Emirates NBD (ENBD.DU), opens new tab and a 0.7% decrease in blue-chip developer Emaar Properties (EMAR.DU), opens new tab.
Dubai-based classifieds firm Dubizzle Group said on Monday it plans to sell a 30.34% stake in an initial public offering (IPO) on the Dubai Financial Market.
In Abu Dhabi, the index (.FTFADGI), opens new tab eased 0.2%.
Saudi Arabia's benchmark index (.TASI), opens new tab rose 0.9%, helped by a 0.9% gain in Al Rajhi Bank (1120.SE), opens new tab and a 0.9% rise in Saudi Aramco (2222.SE), opens new tab.
Aramco's maximum sustainable crude capacity of 12 million barrels per day can be maintained for a year at no additional cost, chief executive Amin Nasser said on Monday.
The Saudi stock market was higher today, recovering from yesterday's correction, said Milad Azar Market Analyst at XTB MENA. The correction followed a regional downturn triggered by risk-off sentiment from fresh U.S.-China tariff escalation and a fall in oil prices to a five-month low, he added.
The Qatari index (.QSI), opens new tab ended flat.
On the monetary policy front, traders are now pricing in a 25-basis-point cut each in October and December by the Federal Reserve, with a 97% and 91% chance, respectively.
Policy shifts in the U.S., where most Gulf currencies are pegged to the dollar, often sway regional markets.
Outside the Gulf, Egypt's blue-chip index (.EGX30), opens new tab added 0.1%.
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