- Most Gulf markets ended higher after lower-than-expected U.S. inflation data.
- Saudi and UAE indices rose, with key gains in banking and real estate stocks.
- Oil supply concerns persist, with Aramco slipping and the IEA predicting a supply surplus.
Gulf stock markets reacted positively to the softer U.S. inflation report, which eased investor concerns over aggressive Federal Reserve tightening.
However, risks remain as trade tariffs threaten to push costs higher, which could impact corporate earnings and economic stability. Saudi Aramco dipped amid oil supply concerns, and Qatar’s index faced losses, particularly in banking and real estate.
Gulf Stocks Rally Despite Tariff Worries and Oil Supply Concerns
The Gulf markets closed higher, driven by cooling U.S. inflation, which strengthened investor confidence in a stable interest rate environment. Saudi stocks rose, particularly in the financial and tech sectors, while Dubai’s Emaar Properties and Abu Dhabi’s ADNOC Gas posted gains.
Despite the positive momentum, oil market uncertainties persist. The International Energy Agency revised its 2025 demand forecast downward, suggesting a supply surplus that could pressure oil prices. This weighed on Saudi Aramco, which closed lower.
Qatar’s market struggled, with Qatar National Bank and United Development Company facing losses. Meanwhile, Egypt’s blue-chip index climbed 0.8% as the country prepares to reduce fuel subsidies, a move aimed at stabilizing its economy.
Looking ahead, investors will monitor upcoming U.S. producer price data for further signals on inflation and monetary policy. With global trade uncertainties still in play, markets remain cautiously optimistic about future growth.
While Gulf markets gained on easing U.S. inflation, ongoing trade and oil supply concerns create a mixed outlook. Investors remain watchful for upcoming economic data.
“Markets are moved not only by facts but by how those facts are perceived.” – Soros
