Many governments of different countries hold US Treasury bonds as reserves for their economy and enjoy interest payments from the US Treasury….reports Asian Lite News
Most Gulf stock markets closed higher after the U.S. Congress adopted a debt ceiling agreement to prevent a government default in the world’s biggest economy.
Before its weekend, Index FADGI in Abu Dhabi closed in positive territory, 0.424% up, on Friday, one day after the US Senate passed the bill. The country’s main lender, FAB, was among the best performers, and closed 1.579% up. , followed by ADNOC Drilling Company, which ended the session 1.370% higher at AED3.7.
The benchmark index for Saudi Arabia (.TASI) today increased 1.9%, supported by gains of 2.5% in Al Rajhi Bank (1120.SE) and 3.8% in Riyad Bank (1010.SE), Reuters reported.
The index (.QSI) in Qatar ended the day 1.8% higher, with nearly all of the stocks closing in the green, including Qatar Islamic Bank (QISB.QA), which increased by 2.1%.
The Global money markets and the White House heaved a sigh of relief as the Biden-McCarthy New Deal helped break the deadlock resulting in a bipartisan approach to passing the bill in the Congress to raise the borrowing limit beyond the $31.4 trillion it breached some months ago.
Many governments of different countries hold US Treasury bonds as reserves for their economy and enjoy interest payments from the US Treasury.
Any failure to pass the bill would have resulted in a global economic crisis, economists said.
The House passed the debt ceiling bill just days ahead of the June 5 deadline to avoid a catastrophic US default. Even as White House had initiated a Plan B simultaneously, if right wing hardliners refused to cooperate, heeding Donald Trump’s call to vote No, of invoking the 14th amendment to bypass the Congress. But luckily that did not come to that pass.
The House voted in a bipartisan manner to pass Speaker Kevin McCarthy’s debt ceiling deal with President Joe Biden by a 314-117 vote.
