Gulf shares muted on tariff uncertainty, Fed rate cut in focus

Most stock markets in the Gulf were muted in early trade on Wednesday as investors weighed uncertainty over U.S. trade deals with a July tariff deadline fast approaching, while U.S. Federal Reserve Chair's comments kept expectations of a rate cut alive.

The Abu Dhabi benchmark index FADGI fell 0.2%, dragged down by a 1.4% drop in RAK Properties RAKPROP and a 0.4% dip in Aldar Properties ALDAR.

The emirate's blue-chip developer Aldar has acquired warehousing and industrial real estate assets in the Al Dhafra region of Abu Dhabi from Waha Capital for 530 million dirhams, it said on Tuesday.

Dubai's benchmark stock index DFMGI was down 0.3%. Union Properties UPP slipped 1.8% and Emirates NBD EMIRATESNBD, the emirate's largest lender, lost 0.9%.

The Qatari benchmark index GNRI dropped 0.3% with Qatar Gas Transport QGTS sliding 1.6% and Qatar National Bank QNBK, the region's largest lender, shedding 0.3%.

Saudi Arabia's benchmark stock index TASI inched down 0.1%. National Shipping Company 4030 dropped 3.7% and Saudi Arabian Mining Company 1211 slipped 1%.

Saudi Arabia's flagship mining company Ma'aden said it had completed the acquisition of the entire stake owned by AWA Saudi in MBAC and Alcoa Saudi in Maaden Aluminium Company.

However, Saudi oilfield services firm Arabian Drilling 2381 advanced 5.5% after the driller said it has secured 1.37 billion riyals ($365.33 mln) in contract extensions for four rigs with Saudi Aramco.

U.S. Federal Reserve Chair Jerome Powell on Tuesday reiterated the U.S. central bank's plans to "wait and learn more" before lowering interest rates.

Market expectations for a July cut inched up to 21.2% from 18.6% in the prior session, according to CME's FedWatch Tool.

The Fed's decisions have a significant impact on the Gulf region's monetary policy, as most currencies there are pegged to the U.S. dollar.