Gulf Stock Markets Fall as US Debt Ceiling Talks Stumble

(Reuters) – Most stock markets in the Gulf closed lower on Thursday, tracking global stocks as talks to raise the US debt ceiling failed to reach an agreement, and a decline also had an impact.

The MSCI (NYSE:) World Index fell by 1 percent.

US President Joe Biden’s administration has reached a dead end with Republican congressmen over raising the $31.4 trillion debt ceiling. On Wednesday, Fitch Ratings put the US credit rating on watch for a possible downgrade.

It fell 0.5 percent, with the decline in the share of Riyad Bank (TADAWUL:) 2.2 percent, and the decline in the share of Al-Rajhi Bank (TADAWUL:) 0.7 percent at the close.

Dubai’s main index fell 0.1 percent for the third session, with Dubai Electricity and Water Authority falling 2 percent.

Daniel Taqi El-Din, CEO of BD Suisse in the Middle East and North Africa, said that the stock market in Dubai is still witnessing some volatility, as traders monitor developments in Europe and the United States.

“In this regard, the main indicator may remain under pressure if the international situation deteriorates further,” he added.

The Abu Dhabi index fell 0.7 percent.

Oil prices fell after Russian Deputy Prime Minister Alexander Novak downplayed the possibility that the OPEC + group, at its meeting next week, will increase production cuts.

The Qatari index fell 0.7 percent, with Industries Qatar falling 2.1 percent.

Outside the Gulf region, the leading index closed down 0.3 percent after rising for two sessions.

(Prepared by Noha Zakaria for the Arabic Bulletin – Edited by Muhammad Muhammadin)