MIDEAST STOCKS-Gulf markets mixed as strong earnings offset US tariff concerns

By Ateeq Shariff

July 21 (Reuters) - Stock markets in the Gulf ended mixed on Monday, as investors weighed positive corporate earnings against concerns over U.S. trade policy changes.

The European Union is exploring broader counter-measures against the U.S. as prospects of an acceptable trade agreement with Washington fade, according to EU diplomats.

Investors had been hoping for some progress in trade talks ahead of U.S. President Donald Trump's August 1 tariff deadline; Commerce Secretary Howard Lutnick is still confident a deal could be reached with the EU.

Saudi Arabia's benchmark index .TASI gained 0.2%, ending a nine-day losing streak, led by a 1.6% gain in sharia-compliant lender Al Rajhi Bank 1120.SE and a 1.2% increase in Saudi National Bank 1180.SE, as the duo reported a rise in quarterly net profit.

But International Petrochemical Company 2310.SE declined 5.7%, after the firm turned to losses in the second quarter.

If upcoming earnings reports are broadly positive, the market may rebound, Osama Al Saifi, managing director for MENA at Traze, said.

Dubai's main share index .DFMGI dropped 0.8%, easing from a multi-year high, hit by a 3.7% slide in top lender Emirates NBD ENBD.DU.

Profit-taking weighed on the market, with noticeable pressure on the financial sector, Saifi said.

"Investors could secure their profits after a long period of strong momentum ahead of the Q2 earnings releases."

Air Arabia AIRA.DU leapt 4.8% to a fresh record high after securing a bid to operate a new Saudi low-cost national airline, set to launch by 2030.

In Abu Dhabi, the index .FTFADGI fell 0.2%.

Oil prices dipped slightly, with the latest European sanctions on Russian oil expected to have minimal impact on supplies while U.S. tariffs ensure demand concerns remain.

The Qatari index .QSI closed 0.7% higher, with the Gulf's biggest lender Qatar National Bank QNBK.QA gaining 1.5%.

Outside the Gulf, Egypt's blue-chip index .EGX30 edged 0.2% higher, hitting a new record high.