Most Gulf stock markets ended higher on Tuesday, as investors cheered the prospect of the world’s largest economy averting a major debt default.

A weekend deal to lift the $31.4 trillion debt limit announced by the White House and House Republicans would avert a catastrophic US default and boost overall appetite for risk.

Dubai’s main share index advanced 0.7%, with blue-chip developer Emaar Properties climbing 2.7% and toll-operator Salik Co closing 2% higher.

Gulf stock markets volatile on US debt deal, economic worries

The Abu Dhabi index concluded 0.8% higher.

Saudi Arabi’s benchmark index ended unchanged.

Oil prices - a key catalyst for the Gulf’s financial markets - fell by about 3% as concerns about the US debt ceiling pact cooled the market’s risk-on sentiment and mixed messages from major producers clouded the supply outlook ahead of their meeting this weekend.

The Qatari benchmark, however, bucked the trend and fell 0.6%, with most of the stocks on the index ending lower including Masraf Al Rayan, which was down 3%.

The Qatari stock market remained under pressure, while natural gas prices recorded more volatility and could return to the downside, said George Pavel, general manager at Capex.com. “Local stocks were seeing mitigated performances, increasing uncertainty around the market’s direction.”

Outside the Gulf, Egypt’s blue-chip index jumped 1.9%, with top lender Commercial International Bank gaining 1.5%.

The Egyptian stock market continued to recover, supported by the buying volumes from local investors while international ones remained on a selling spree, Pavel said.

SAUDI ARABIA was flat at 11,140

ABU DHABI rose 0.8% to 9,484

DUBAI gained 0.7% to 3,567

QATAR dropped 0.6% to 10,339

EGYPT leapt 1.9% to 17,535

BAHRAIN eased 0.1% to 1,963

OMAN lost 0.5% to 4,619

KUWAIT added 0.2% to 7,560