Most stock markets in the Middle East retreated on Sunday as investors see more volatility spilling over from trade talks between the US and China.
President Donald Trump said in a tweet on Sunday it would be wise for China to “act now” to finish a trade deal with the US, warning that “far worse” terms would be on offer for them after what he predicted would be his certain re-election in 2020.
The main equity indexes in Saudi Arabia and Kuwait fell the most in the Gulf, both down more than 2%. The main gauge in Riyadh was set for the seventh consecutive decline, the longest run since March 2018.
“The world is watching as the US is making all the statements and emotions while the Chinese are keeping silent to the minimum,” according to Mohammed Ali Yasin, chief strategy officer at Al Dhabi Capital in Abu Dhabi. As tensions escalate, “businesses that import parts from China manufacturers, and industrial and aviation sectors that export to China, would see big pressure.”For all the latest business news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.
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