Most stock markets in the Gulf closed higher on Tuesday helped by climbing oil prices, while investors assessed the possible impact on the dollar and interest rates after the U.S. administration threatened Federal Reserve Chair Jerome Powell with a criminal indictment.
Oil prices — a catalyst for the Gulf’s financial markets — extended gains as heightened concerns surrounding major producer Iran and potential supply disruptions overshadowed the prospect of increased crude supply from Venezuela.
Saudi Arabia’s benchmark index (.TASI) advanced 1.4%, with Al Rajhi Bank (1120.SE) rising 1.9% and Saudi Arabian Mining Company (1211.SE) jumping 4.9%.
Elsewhere, oil giant Saudi Aramco (2222.SE) climbed 2.7%.
Dubai’s main share index (.DFMGI) gained 0.8%, with top lender Emirates NBD (ENBD.DU) rising 1.7% and sharia-compliant lender Dubai Islamic Bank (DISB.DU) up 1.2%.
In Abu Dhabi, the index (.FTFADGI) added 0.3%.
In the U.S., the Trump administration appears to be on the offensive again against the Federal Reserve, reviving concerns about the central bank’s independence and contributing to greater uncertainty over the economic outlook.
Gulf markets often track shifts in U.S. rate expectations, as most regional currencies are pegged to the dollar.
Further fuelling geopolitical worries, U.S. President Donald Trump said Monday that any country doing business with Iran will be hit with a 25% U.S. tariff, as Washington considers how to respond to Iran’s crackdown on major anti-government protests.
The Qatari index (.QSI) concluded 0.6% higher, with Qatar Islamic Bank (QISB.QA) putting up 1.8%.
Post trading hours, the Gulf’s biggest lender by assets Qatar National Bank (QNBK.QA), which ended 1% higher, reported an annual net profit of 17 billion riyals ($4.66 billion).
Outside the Gulf, Egypt’s blue-chip index (.EXG30) rose 0.7%, with Commercial International Bank (COMI.CA) leaping 4.5%.
Saudi Arabia
(.TASI) rose 1.4% to 10,894
Abu Dhabi
(.FTFADGI) added 0.3% to 10,032
Dubai
(.DFMGI) gained 0.8% to 6,319
Qatar
(.QSI) climbed 0.6% to 11,229
Egypt
(.EGX30) was up 0.7% to 43,684
Bahrain
(.BAX) eased 0.1% to 2,045
Oman
(.MSX30) lost 0.2% to 6,178
Kuwait
(.BKP) advanced 0.9% to 9,424
($1 = 3.6500 Qatar riyals)
