By Ateeq Shariff

April 7 (Reuters) - Most stock markets in the Gulf ended

lower on Monday, as equities across the world tanked on fears of

a global recession caused by U.S. President Donald Trump's

sweeping tariffs and the escalating trade war.

China on Friday had announced retaliatory measures, with

additional levies of 34% on American goods, confirming investor

fears that a global trade war was underway.

When asked about selloff across markets, Trump on Sunday

said

that investors must endure the consequences and that he

would refrain from negotiating with China until the U.S. trade

deficit is addressed.

Dubai's main share index declined 3.1%, recovering

from the more-than-6% slump earlier in the session. The index

was weighed by a 5.7% slide in sharia-compliant lender Dubai

Islamic Bank.

In Abu Dhabi, the index finished 2.6% lower, with

energy firm ADNOC Gas retreating 5%.

Oil prices - a catalyst for the Gulf's financial markets -

extended losses, falling 3% on concerns that a potential

recession fuelled by the trade war could reduce demand for

crude, even as OPEC+ readies a supply increase.

Saudi Arabia's benchmark index reversed early losses

to rebound 1.1%, led by a 6.8% jump in ACWA Power and

a 4.8% increase in Saudi Arabian Mining Company.

In the previous session, the index fell 6.8%, its biggest

one-day slide since the early days of the 2020 COVID-19

pandemic.

The Saudi market outlook could remain negative as long as

the general market sentiment maintains its risk-off mood and oil

prices continue to fall, said Hassan Fawaz, chairman and founder

of broker GivTrade.

The kingdom's non-oil private sector activity grew rapidly

in March, with new orders boosted by lower prices and improved

economic conditions, although the rate of growth slowed from

January's near 14-year high, a survey showed on Monday.

The Qatari index lost 0.4%, with the Gulf's biggest

lender Qatar National Bank losing 2.3%.

Investors also bet the mounting risk of recession could see

the U.S. Federal Reserve cutting interest rates as early as May.

The Fed's decisions impact monetary policy in the Gulf, where

most currencies, including the riyals, are pegged to the U.S.

dollar.

Outside the Gulf, Egypt's blue-chip index lost

0.6%.

SAUDI ARABIA rose 1.1% to 11,194

Abu Dhabi down 2.6% to 8,949

Dubai fell 3.1% to 4,799

QATAR lost 0.4% to 9,766

EGYPT was down 0.6% to 30,454

BAHRAIN dropped 1.2% to 1,897

OMAN fell 0.7% at 4,224

KUWAIT eased 0.6% to 8,054