Mideast Stocks: Most Gulf markets fall on lower oil prices; US debt ceiling vote in focus

Mideast Stocks: Most Gulf markets fall on lower oil prices; US debt ceiling vote in focus

Most stock markets in the Gulf ended lower on Wednesday pressured by a decline in oil prices and a weaker-than-expected Chinese economic data, ahead of a crucial vote in Washington on the U.S. debt ceiling.

The U.S. House of Representatives is due to vote on Wednesday on a bill to lift the government's debt ceiling, a critical step to avoid a potential economically destabilizing default that could come early next week without congressional action.

Saudi Arabia's benchmark index fell more than 1%, with Al Rajhi Bank and Riyad Bank sliding 1.3% and 2.8%, respectively.

The Saudi stock market recorded losses with traders considering the impact of the weaker-than-expected Chinese manufacturing activity on the local economy, said Ahmed Negm, Head of Market Research MENA at XS.com.

"The main index could remain exposed to developments in energy markets."

China's manufacturing activity contracted faster than expected in May on weakening demand, with the official manufacturing purchasing managers' index (PMI) down to 48.8 from 49.2 in April.

The outcome lagged a forecast of 49.4. In Abu Dhabi, the index closed 0.8% lower. Separately, the United Arab Emirates said on Wednesday it was no longer taking part in operations by a U.S.-led task force protecting Gulf shipping, which has been subjected