Mideast stocks: Most Gulf markets gain on US debt ceiling deal; Abu Dhabi falls

Mideast stocks: Most Gulf markets gain on US debt ceiling deal; Abu Dhabi falls

Most stock markets in the Gulf rose in early trading on Monday after lawmakers in Washington reached a tentative agreement on the U.S. debt ceiling deal, although concerns about more Federal Reserve interest rate hikes capped gains.

U.S. President Joe Biden and House Speaker Kevin McCarthy forged an agreement at the weekend to suspend the $31.4 trillion debt ceiling and cap government spending for two years. Both leaders expressed confidence that members of the Democratic and Republican parties will vote to support the deal.

Saudi Arabia's benchmark index gained 0.2%, helped by a 1.8% rise in Riyad Bank and a 0.9% increase in Alinma Bank.

Among other gainers, United Electronics climbed about 4% after Reuters cited two sources familiar with the matter as saying the firm is planning an initial public offering of its Islamic consumer finance business, Tasheel Finance.

Dubai's main share index added 0.5%, with sharia-compliant lender Dubai Islamic Bank putting on 1.4%.

In Qatar, the index was up 0.2%, with Qatar Navigation rising 1.9%.

Crude prices - a key catalyst for the Gulf's financial markets - rose on the U.S. debt ceiling deal, possibly averting a default in the world's largest economy and oil consumer.

Prices gained following the U.S. debt ceiling talks and