Equity markets across the Gulf had a mixed day on Thursday as a rebound in oil prices and a temporary lull in global volatility offered some respite following a US court ruling that struck down former President Donald Trump’s sweeping tariff measures.
Brent crude rose 1 percent to $63.78 a barrel by 15:00 Gulf Standard Time, while West Texas Intermediate advanced 1.5 percent to $62.75. The gains lent support to energy-heavy economies such as Saudi Arabia and the UAE.
But this was not universally reflected in the markets. Saudi Arabia’s benchmark Tadawul All Share Index ended the day down 0.24 percent. Dubai’s main index closed down 0.61 percent, snapping five consecutive days of gains.
Abu Dhabi’s benchmark was up by the slightest of margins at 0.02 percent. Qatar’s QE Index added 0.24 percent, tracking broader emerging market strength, with the MSCI EM Index up 0.5 percent.
The modest rebound in risk sentiment followed a ruling late on Wednesday by the US Court of International Trade, which deemed Trump’s blanket 10 percent tariffs on a broad range of imported goods and services unlawful.
The tariffs, part of a revived protectionist push branded as “Liberation Day” measures, have rattled supply chains and raised the spectre of retaliatory trade moves from major partners.
The Trump administration has vowed to appeal the decision, potentially escalating the case to the US Supreme Court.
A 25 percent tariff remains on automotive, steel and aluminium imports to the US as well as tariffs on China that were imposed during Trump’s first term and expanded under the previous administration under President Joe Biden.
Traders are watching oil markets ahead of Saturday’s Opec+ meeting, where the alliance, led by Russia and Saudi Arabia, is expected to discuss accelerating production hikes for July amid tightening global supply and rising demand signals.
