The major Gulf markets are mixed in their earnings with a focus on US-China discussions

The major Gulf stock markets were mixed early on Thursday, as investors awaited this weekend's U.S. China trade negotiations.

Donald Trump, the U.S. president, suggested on Wednesday that China initiated trade talks. He added that he would not be willing to reduce U.S. tariffs against Chinese goods in order to convince Beijing to negotiate. Bessent stated that the talks are just a beginning and not advanced discussions.

Saudi Arabia's benchmark stock index dropped 0.3% due to a decline of 1.6% in Saudi Arabian Mining Company.

ACWA Power Company fell 1.1%. The energy and water solution provider reported a net profit for the first quarter of 427.2 million Riyals, an increase year-over-year, but a drop of about 15% compared to the previous quarter.

Middle East Healthcare Company, on the other hand, saw its shares fall 7.5% despite reporting an impressive quarterly profit increase.

Dubai's main stock index fell 0.3% with Emaar Properties, a blue-chip developer, falling 0.7%.

The U.S. Federal Reserve, however, held its interest rates at the same level on Wednesday, but warned that risks of inflation and unemployment were rising as policymakers struggled to deal with the impact of Trump’s tariffs.

The Fed's actions impact the monetary policy of the Gulf where the majority of currencies, including dirhams, is pegged to the U.S. Dollar.

The United Arab Emirates Central Bank maintained its base interest rate at 4.40% and kept the monetary policy stable.

ADNOC Drilling Company's 2.5% increase, just a day after it reported a 25% rise in its first-quarter profits, contributed to the 0.3% gain in Abu Dhabi.

The Qatari Index gained 0.7% led by the 1.5% increase in Qatar Islamic Bank.

Separately on Wednesday, Trump announced that he would soon make an announcement about whether the U.S. is going to ease restrictions on microchip exports to certain Gulf countries.

(source: Reuters)