PHOTO
An investor walks at the Saudi Stock Exchange (Tadawul) in Riyadh, Saudi Arabia January 18, 2016. Image used for illustrator purpose
Stock markets in the Gulf fell sharply on Sunday as U.S. President Donald Trump's drastic trade tariffs and countermeasures from China stoked fears of a trade war and the prospect of a global recession.
China's finance ministry said on Friday it will impose additional 34% tariffs on all U.S. goods from April 10 as a countermeasure to sweeping tariffs imposed by Trump.
Saudi Arabia's benchmark index plunged 6.8% - its biggest intraday fall since May 2020 - dragged down by a 5.9% decline in Al Rajhi Bank and a 6.8% retreat in the country's largest lender Saudi National Bank.
Among other fallers, oil giant Saudi Aramco was down 5.3%, its biggest daily slide since the early days of the 2020 COVID-19 pandemic. Oil prices - a catalyst for the Gulf's financial markets - plummeted 7% on Friday to a three-year low as China's tariff hikes on U.S. goods intensified the trade war, and as OPEC+ unexpectedly sped up oil output hikes.
Trump's Wednesday tariff announcement shook global stock markets, wiping out $5 trillion in value for S&P 500 index companies by Friday's close, a record two-day decline.
China said on Saturday "the market has spoken" in rejecting Trump's tariffs, and called on Washington for "equal-footed consultation" after global markets' dramatic reaction to the trade levies, which drew Chinese retaliation.
In Qatar, the index - which resumed trading after a five-session Eid break - tumbled 4.2%, with petrochemical maker Industries Qatar diving 8.2% and the Gulf's biggest lender Qatar National Bank down 4%.
Elsewhere, Kuwait's stock market ended 5.7% lower. Outside the Gulf, Egypt's blue-chip index dropped 3.3%, with Talaat Moustafa Group closing 4.5% lower.
SAUDI ARABIA down 6.8% to 11,077
QATAR declined 4.2% to 9,800
EGYPT lost 3.3% to 30,640
BAHRAIN dropped 1% to 1,919
OMAN fell 2.6% to 4,253
KUWAIT slid 5.7% to 8,106
(Reporting by Ateeq Shariff in Bengaluru; Editing by Jan Harvey)