U.S. debt ceiling deal boosts Gulf markets excluding Abu Dhabi. After Washington politicians negotiated a tentative debt ceiling compromise, most Gulf stock markets climbed in early trade on Monday, although concerns about future Federal Reserve interest rate hikes limited gains.
President Joe Biden and House Speaker Kevin McCarthy agreed over the weekend to suspend the $31.4 trillion debt ceiling and cap federal spending for two years. Both leaders believed Democrats and Republicans would approve the deal.
Riyad Bank (1010. S.E.) rose 1.8% while Alinma Bank (1150. S.E.) rose 0.9%, helping Saudi Arabia’s benchmark index (.TASI) advance 0.2%.
Reuters reported that United Electronics (4003. S.E.) is preparing an initial public offering of its Islamic consumer lending business, Tasheel Lending.
Dubai Islamic Bank (DISB.DU) gained 1.4%, and Dubai’s main share index (.DFMGI) 0.5%.
Qatar Navigation (QNNC.QA) rose 1.9% while the index (.QSI) 0.2%.
Oil prices increased on the U.S. debt ceiling resolution, perhaps preventing a default in the world’s largest economy and oil users.
Prices rose after U.S. debt ceiling talks, and Saudi energy minister Abdulaziz bin Salman advised short-sellers to “watch out” for pain. FTFADGI fell 0.2%.
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