MIDEAST STOCKS-Gulf stocks settle varied on tariff uncertainty, rise in oil prices

By Rishab Shaju

June 2 (Reuters) - Stock markets in the Gulf ended varied on Monday, as investor sentiment remained fragile after U.S. President Donald Trump's threat to double tariffs on worldwide steel and aluminium.

Trump accused China of violating a bilateral deal to roll back tariffs and announced a 50% tariff on steel and aluminium, rattling international trade. The tariffs are set to come into effect starting June 4.

Oil prices - a catalyst for markets in the Gulf - jumped by more than 4% after the OPEC+ group decided to keep output increases in July at the same level as the prior two months. O/R.

Brent crude futures was up 3.97%, at $65.27 a barrel by 1220 GMT. The Organization of the Petroleum Exporting Countries and its allies, decided on Saturday to raise output by 411,000 barrels per day in July.

S&P 500 futures ESc1 fell 0.5%, while Nasdaq futures NQc1 lost 0.7%, suggesting a retreat at the opening bell later. MKTS/GLOB

Saudi Arabia's benchmark stock index .TASI settled 0.23% higher with packaging provider United Carton Industries 1323.SE up 4.52% and industrial company Savola Group 2050.SE up 4.66%.

"Sector performance was mixed but generally supportive, notably from the banking sector, which had experienced significant losses recently. Energy stocks also contributed positively, buoyed by higher oil prices," said Joseph Dahrieh, Managing Principal at Tickmill.

Al Rajhi Bank 1120.SE, Saudi Arabia's second-largest lender by assets, settled up 1.24%.

The UAE stock markets presented a mixed picture, with Dubai's main share index .DFMGI settling flat and Abu Dhabi's, benchmark index .FTFADGI finishing down 0.39%. The Abu Dhabi index recorded a second straight session of losses.

"The Dubai stock market was relatively stable after two previous sessions of losses. Momentum could remain intact and the market could continue to rise," said Dahrieh.

In Dubai, food and groceries delivery provider Talabat Holding TALABAT.DU was down 1.39%, while Amlak Finance AMLK.DU rose by 14.55%.

Qatar's benchmark stock index .QSI settled 0.16% lower. Commercial Bank COMB.QA was the top loser on the index, down 1.78%. The index touched its lowest levels since May 1.

Outside the Gulf, Egypt's blue-chip index .EGX30 fell 0.54%, extending losses for a second consecutive session.

Real estate companies took a hit, with Orascom Development Egypt ORHD.CA down 3.2% and Emaar Misr for Development EMFD.CA down 3.01%.