Global markets are entering a pivotal week, with investors closely monitoring developments in international trade, the ongoing conflict in Gaza, and key economic indicators. Most Gulf equities closed higher on Sunday, as market participants braced for significant corporate earnings reports and a crucial U.S. Federal Reserve policy meeting. The Saudi Arabia's benchmark index (TASI) saw a 0.1% increase, supported by strong performances in healthcare and petrochemical sectors, while Qatar's stock index (GNRI) rose 0.3%. Gains were somewhat tempered by oil prices slipping to a three-week low, impacting sentiment in the oil-dependent region. Outside the Gulf, Egypt's blue-chip index (EGX30) advanced 1.3%, reaching a new record high. The Federal Reserve is widely expected to maintain interest rates at 4.25%-4.50%, despite political pressure for cuts, with rising U.S. inflation (2.7% in June) clouding expectations for a potential September rate reduction.
On the trade front, U.S. Commerce Secretary Howard Lutnick declared there would be no extension for tariffs scheduled to take effect on August 1. Lutnick emphasized that Europe must open its markets to U.S. exports to secure a lower tariff agreement. President Donald Trump indicated a 50-50 chance of reaching a trade pact with the European Union, which could involve a 15% tariff on EU goods and a 50% tariff on European steel and aluminum, half the previously threatened 30% duties. The EU has already approved counter-tariffs on €93 billion ($109 billion) worth of U.S. goods in anticipation of failed negotiations. Lutnick expressed confidence that deals would be reached before the August 1 "hard deadline."
In a related development, Commerce Secretary Lutnick reiterated the U.S. stance on TikTok, stating that the popular short-video app, used by approximately 170 million Americans, must transition to American ownership, including control over its core technology and algorithms. Failure to do so would result in TikTok ceasing operations in the United States. This follows President Trump's extension of the divestment deadline to September 17, 2025.
Meanwhile, the humanitarian situation in Gaza remains a critical international concern. Israel announced a daily 10-hour "tactical pause" in military operations in specific areas of Gaza—Al-Mawasi, Deir al-Balah, and Gaza City—to facilitate aid delivery, effective from 10 AM to 8 PM. Additionally, secure routes for humanitarian convoys will be open daily from 6 AM to 11 PM. This decision comes amid mounting international pressure and warnings from over 100 NGOs about "mass starvation" in Gaza, with the UN reporting that a quarter of the population faces famine-like conditions.
Israeli Prime Minister Benjamin Netanyahu affirmed that Israel is allowing aid into Gaza and accused the United Nations of fabricating "excuses and lies" regarding aid obstruction. Netanyahu reiterated Israel's commitment to continue fighting until "complete victory" and the elimination of Hamas, while also stating that a "minimum amount" of humanitarian aid would continue to be allowed. He also indicated that Israel is exploring "alternative options" to ceasefire talks with Hamas, citing the group's perceived lack of desire to reach a truce.
The British Foreign Secretary, David Lammy, stated that Israel's temporary ceasefire to allow aid corridors is "insufficient" to alleviate the severe suffering in Gaza. The UK has condemned the humanitarian crisis and is prepared to take further action if the situation persists, also backing airdrops of aid in cooperation with Jordan and the United Arab Emirates.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.