(Reuters) – Major stock markets in the Gulf fell in early trade on Wednesday after the latest round of U.S. tariffs and countermeasures from Canada and China stoked fears of a major global trade war.
U.S. President Donald Trump’s new 25% tariffs on imports from Mexico and Canada took effect on Tuesday, along with fresh duties on Chinese goods, sparking trade wars that could slam economic growth and raise prices for Americans still smarting from years of high inflation.
China and Canada retaliated with their own set of tariffs on a range of U.S. goods, while Mexico said it would announce its response on Sunday.
Saudi Arabia’s benchmark stock index dropped 0.4%, dragged by a 6.9% fall in Dallah Healthcare Company despite reporting a rise in annual profit.
Among other losers, Seera Holding tumbled 5% after the investment group reported a loss for 2024, compared to a profit in the previous year.
Dubai’s main share index fell 0.4%, pressured by a 3.5% slide in top lender Emirates NBD in ex-dividend trade.
Elsewhere, blue-chip developer Emaar Properties was down 0.4% and Emirates Central Cooling Systems Corp retreated 1.2%.
In Abu Dhabi, the benchmark index eased 0.1%.
Oil prices – a catalyst for the Gulf’s financial markets – steadied after hitting multi-month lows in the previous session, but remained under pressure as the market eyed plans by major producers to raise output in April as well as U.S. tariffs on Canada, Mexico and China.
The Qatari index lost 0.2%, with Qatar Islamic Bank declining 1.8%.
(Reporting by Ateeq Shariff in Bengaluru; Editing by Subhranshu Sahu)
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