Mideast Stocks: Most Gulf markets retreat ahead of vote on Trump's tax bill

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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%.