Gulf stocks recover after Trump hits pause on new trade tariffs
Oil prices continued to fall amid concerns that the U.S trade war with China – Saudi Arabia's biggest oil customer – will keep spiraling upward
FAYEZ NURELDINE/AFP via Getty Images
Saudi Arabia's Tadawul Stock Exchange in Riyadh
Gulf stocks reversed direction in tandem with global equity markets after U.S. President Donald Trump declared a pause to his imposition of trade tariffs around the world.
Saudi Arabia’s benchmark Tadawul index rose 4% on Thursday, its biggest intraday increase in four years, Reuters reports. On Sunday, the index suffered its worst fall in almost five years following last week’s announcement of the U.S. tariffs.
Elsewhere in the region, Dubai’s main share index rebounded 2.6%, led by Emaar Properties’ 4.7% climb, while Abu Dhabi’s benchmark index rose 1.3% and Qatar stocks gained 2.1%.
Oil prices, on the other hand, continued to fall amid concerns that the U.S-China trade war will keep spiraling upward.
Trump raised the tariff rate for China – Saudi Arabia’s biggest oil customer – to 125% on Wednesday, up from his previously announced 104% percent tariff. China, meanwhile, announced an additional tariff of 84% on U.S. imports.