Gulf stocks subdued on US rate cut concerns

Stock markets across the Gulf opened cautiously on Tuesday, mirroring a broader Asian sell-off, according to Reuters. The primary driver of the subdued sentiment was stronger-than-expected US retail sales data for March.

Saudi Arabia’s benchmark index, the TASI, dipped 0.2 per cent, dragged down by declines in banking giant Al Rajhi by 0.6 per cent and petrochemical leader Saudi Basic Industries by 1.4 per cent.

Similarly, Qatar’s index and Dubai’s main index both shed around 0.3 per cent and 0.2 per cent respectively, with losses in Industries Qatar by a 0.7 per cent and Emirates NBD by 0.6 per cent, contributing to the downturns.

In contrast, Abu Dhabi’s index managed a slight increase of 0.1 per cent, supported by a rise of 0.2 per cent in First Abu Dhabi Bank.

While the Gulf markets displayed a mixed performance, the overall sentiment remains cautious as the US economic strength mutes hopes for imminent rate cuts and geopolitical jitters persist.