On Sunday, Gulf markets showed negative dynamics, driven by low quarterly results from local companies and new economic challenges from the U.S.
Trading Results in the Gulf
All major Gulf indices, except Egypt, closed in the red. Saudi Arabia and Qatar experienced the largest declines, while Egypt was the only market to report a gain.
Main Factors Behind the Decline
The sell-off was triggered by disappointing quarterly reports from leading companies and a growing sense of uncertainty stemming from Washington. President Donald Trump implemented new import tariffs, which affected investor confidence across the region. Additionally, weak job numbers from the U.S. and expectations regarding the Federal Reserve's policy changes added to the market pressures.
Impact of Tariffs on Business
The tariffs imposed by Trump negatively impacted the stocks of major companies. For instance, Saudi Arabia's index fell by 0.8%, and Saudi Aramco lost 1.2% ahead of its quarterly earnings report. Furthermore, Jabal Omar Development, operating in the hospitality sector, recorded a 5.4% drop amidst declining hotel revenues.
In conclusion, the downturn in Gulf markets is linked to disappointing financial results from companies and new economic risks emerging from the U.S. These factors are creating uncertainty for investors, and further market changes are expected in the coming months.
