Mideast Stocks: Most Gulf Markets Retreat Ahead of Vote on Trump’s Tax Bill

Most stock markets in the Gulf gave up early gains to close lower on Tuesday, as investors booked profits and turned cautious ahead of a U.S. Senate vote on President Donald Trump's landmark tax and spending bill. The proposed legislation, which faces internal Republican opposition, is expected to add $3.3 trillion to the nation's debt pile.

Saudi Arabia's benchmark index dropped 0.4%, weighed by a 2.3% fall in Saudi Arabian Mining Company. Among other losers, Savola slipped 2.2% after announcing its CEO had stepped down by mutual agreement as part of a strategic overhaul.

Citing trade sources, Reuters reported that Saudi Arabia, the world's biggest oil exporter, may raise its August crude prices for Asian buyers to a four-month high, following a surge in spot prices during the Iran-Israel conflict and on strong summer demand.

Dubai's main share index eased 0.2%, snapping a six-day rally after hitting a 17-year high earlier in the session, hit by a 0.7% fall in blue-chip developer Emaar Properties.

Meanwhile, Trump continued to pressure the U.S. Federal Reserve, sending Chair Jerome Powell a list of global interest rates with handwritten commentary suggesting U.S. rates should fall between Japan's 0.5% and Denmark's 1.75%.

In Abu Dhabi, the index finished 0.3% lower. Oil prices were slightly higher as investors assessed expectations that OPEC+ will announce an output hike for August at an upcoming meeting as well as trade negotiations.

The Qatari index closed 0.5% lower, extending losses from the previous session when it ended a six-day winning streak, with all sectors in negative territory.

Qatar's economy expanded 3.7% in the first quarter, up from 1.5% a year earlier, according to government data issued on Tuesday.

Outside the Gulf, Egypt's blue-chip index lost 0.5%, with Beltone Financial Holding declining 6.7%.

SAUDI ARABIA dropped 0.4% to 11,122

ABU DHABI slipped 0.3% to 9,929

DUBAI eased 0.2% to 5,693

QATAR fell 0.5% to 10,698

EGYPT dropped 0.5% to 32,707

BAHRAIN was flat at 1,944

OMAN added 0.3% to 4,514

KUWAIT declined 0.6% to 9,133