Gulf stock markets rose slightly on Sunday following a tumultuous week for bourses worldwide, amid continuing US-China trade tension that has led to fears of an economic slowdown.
The Saudi Tadawul All Share Index (TASI) closed 0.78 per cent higher, while the Qatar Stock Exchange closed up 0.23 per cent and the Muscat Stock Exchange closed up 0.13 per cent. Kuwait's main market closed the session 0.13 per cent higher although its all share index closed down 0.15 per cent, and Bahrain's bourse ended the day up 0.03 per cent after rising higher during the day.
Global stock markets lost trillions of dollars in value last week amid the disruption driven by the sweeping tariffs imposed by US President Donald Trump worldwide. The Saudi stock market last Sunday lost more than half a trillion riyals in market value, with the TASI plunging more than 6 per cent.
A relief rally came on Wednesday after Mr Trump made an about-turn on some of his tariffs by announcing a 90-day pause. However, markets again lost gains after Washington and China's tariff row escalated on Friday, with Beijing announcing it would raise levies on US goods to 125 per cent, effective on Saturday, in response to Mr Trump's 145 per cent levy.
The Chinese Finance Ministry criticised further US tariff increases as economically meaningless. Beijing said it would ignore any further raised tariffs by Washington but remains open to negotiations if the terms are fair.
"The ongoing tit-for-tat has added to global market volatility with US equity markets closing deep in red [on Friday] just 24 hours after a record-breaking trading session," the National Bank of Kuwait said in a report on Sunday.
"The US dollar index fell to the lowest level in nearly three years, below the 100 mark, as majors continue to gain on the back of global trade uncertainty, and a flock to other safe haven currencies and commodities, including the Swiss franc and gold."
Gold prices hit an all-time high of $3,237 on Friday and have gained nearly 21 per cent so far this year driven by a weaker dollar, recession concerns over the intensifying trade war, central bank demand and increased flows into gold-backed exchange-traded funds.
Bullion prices could touch between $3,400 and $3,500 in the months ahead as investors flock to bullion as a safe-haven asset from market volatility, analysts say.
Meanwhile, oil prices rebounded on Friday but recorded a second weekly drop amid the tariff tumult. Brent, the benchmark for two thirds of the world's oil, settled at $64.76 a barrel, up 2.26 per cent. West Texas Intermediate, the gauge that tracks US crude, finished at $61.50 a barrel, up 2.38 per cent.
