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Gulf shares tempered on tariff uncertainties, Fed rate cuts in focus

Investors weighed the uncertainty surrounding U.S. tariffs with a deadline of July fast approaching. Meanwhile, comments from U.S. Federal Reserve Chairman kept hopes alive for a rate reduction.

The benchmark Abu Dhabi index dropped 0.2%. This was due to a drop of 1.4% in RAK Properties, and a dip of 0.4% in Aldar Properties.

Aldar, the emirate’s top developer, has purchased warehouses and industrial properties in Al Dhafra from Waha Capital. The deal was worth 530 million dirhams.

Dubai's benchmark index fell by 0.3%. Union Properties fell 1.8%, and Emirates NBD lost 0.9%.

Qatar Gas Transport, the largest lender in the region, fell 1.6%, while Qatar National Bank, the benchmark index for Qatar, dropped 0.3%.

Saudi Arabia's benchmark index fell 0.1%. National Shipping Company fell 3.7%, and Saudi Arabian Mining Company declined 1%.

Saudi Arabia's largest mining company Ma'aden announced that it has completed the acquisition of all the stakes owned by AWA Saudi and Alcoa Saudi Maaden Aluminium Company.

Arabian Drilling, a Saudi oilfield service firm, rose 5.5% on the news that it had secured 1.37 billion Saudi riyals (US$365.33 million) in contract extension for four rigs.

Jerome Powell, the chair of the U.S. Federal Reserve, reiterated on Tuesday that it was going to "wait and see" what more information is available before lowering rates.

According to CME's FedWatch Tool, market expectations for a cut in July have increased to 21,2% from 18,6% the previous session.

Fed decisions can have a major impact on the Gulf's monetary policies, since most of the currencies in the region are pegged to U.S. dollars.

(source: Reuters)