MIDEAST STOCKS-Most Gulf markets end subdued on Trump's trade plans

By Ateeq Shariff

Jan 21 (Reuters) - Most stock markets in the Gulf ended subdued on Tuesday, as investors exercised caution after U.S. President Donald Trump said he was thinking about imposing trade tariffs on neighbouring countries just hours into his presidency.

Global investors were on edge after the president suggested he could impose 25% tariffs on Mexico and Canada, with a potential implementation date of Feb. 1, challenging suggestions that his trade policy might be more gradual.

The Trump administration's policies may have significant and widespread impacts on the U.S. economy, potentially influencing the value of the dollar, Treasury yields and inflation rates. This, in turn, could lead to fewer interest rate cuts, as the Federal Reserve may adjust its monetary policy in response.

Monetary policy in the six-member Gulf Cooperation Council (GCC) is usually guided by the Fed's decisions, as most regional currencies are pegged to the dollar.

Saudi Arabia's benchmark index .TASI eased 0.1%, hit by a 3.5% fall in ACWA Power Company 2082.SE.

In Qatar, the index .QSI finished flat.

Oil prices - a catalyst for the Gulf's financial markets - fell as investors assessed Trump's plans for tariffs while boosting oil and gas production in the United States.

Dubai's main share index .DFMGI gained 0.5%, with blue-chip developer Emaar Properties EMAR.DU rising 1.9%.

Outside the Gulf, Egypt's blue-chip index .EGX30 rose 0.7%, led by a 0.8% rise in Commercial International Bank COMI.CA.

Egypt's economy will grow by 4.0% in the year to the end of June as IMF measures continue to help improve its economic environment, a Reuters poll forecast on Monday.

(Reporting by Ateeq Shariff in Bengaluru)

((AteeqUr.Shariff@thomsonreuters.com; +918061822788;))