BNR – The majority of Gulf stock markets climbed in early trade on Monday. This occurred after legislators in Washington achieved a tentative deal on the United States debt ceiling. However, concerns about more Federal Reserve interest rate rises restricted the gains.
Over the past few days, US President Joe Biden and House Speaker Kevin McCarthy reached a deal. The deal calls for the suspension of the $31.4 trillion debt ceiling and a two-year spending freeze.
Both expressed optimism that members of the Democratic and Republican parties would vote in favour of the deal. Saudi Arabia’s benchmark index rose 0.2%, aided by a 1.8% rise in Riyad Bank and a 0.9% rise in Alinma Bank.
United Electronics rose around 4%, among other gainers. According to reliable sources, the company is preparing an initial public offering of its Islamic consumer financial advisor, Tasheel Finance.
Dubai’s main stock exchange gained 0.5%, with Sharia-compliant lender Dubai Islamic Bank gaining 1.4%. Qatar’s index was up 0.2%, with Qatar Navigation up 1.9%.
Crude oil is a major driver of the Gulf’s financial markets. Its value increased as a result of the debt ceiling agreement in the United States. Consequently, it potentially prevents a default in the world’s largest economy and oil client.
Prices rose following the debt ceiling discussions in the United States and after Saudi energy minister Abdulaziz bin Salman advised short-sellers speculating on falling oil prices to beware of pain. The Abu Dhabi index defied the trend, falling 0.2%.