(Reuters) – Major stock markets in the Gulf fell in early trade on Tuesday, as investors fretted that a wide-ranging trade war could dent U.S. economic growth and lead to a recession.
Investor concerns about the potential economic slowdown were exacerbated after President Donald Trump in a Fox News interview talked about a “period of transition” while declining to predict whether his tariffs would result in a U.S. recession.
Tariffs have been a key concern for investors, with many believing that they can hurt economic growth and be inflationary.
U.S. economic growth showed signs of slowing after February’s job growth fell short of expectations. Investors now await the Consumer Price Index report on Wednesday and the Producer Price Index data on Thursday to gauge the Federal Reserve’s next move on interest rates.
Monetary policy in the six-member Gulf Cooperation Council (GCC) is usually guided by the Fed’s decisions, as most regional currencies are pegged to the dollar.
Saudi Arabia’s benchmark stock index declined 1.3%, weighed down by a 1.6% slide in Al Rajhi Bank and a 1.9% drop in Saudi National Bank, the country’s biggest lender.
Private buyers in Saudi Arabia are expected to spend $1.22 billion in the country’s residential market this year, property consultant Knight Frank said in a report, with NEOM being the most sought-after for a home purchase.
Dubai’s main share index retreated 1.1%, hit by a 2.3% fall in blue-chip developer Emaar Properties and a 1.9% decline in top lender Emirates NBD.
In Abu Dhabi, the benchmark stock index fell 1%.
The Qatari index was down 0.6%, with Barwa Real Estate Company down 7% in ex-dividend trade.
(Reporting by Ateeq Shariff in Bengaluru; Editing by Subhranshu Sahu)
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