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Mideast Stocks Slide As World Markets Respond To Wall Street Rout

“There is selling pressure and profit-taking across the board.”

Well it’s Sunday which means that all else equal (not a safe assumption in a world run by a “very stable genius” who refers to himself in the third person in scare quotes), tomorrow will be Monday.

Given how things played out on Wall Street to close the week, U.S. investors will be watching overseas markets nervously for clues as to whether we’re about to get trapped in that nightmare loop where it becomes impossible to discern who’s taking their cues from who.

That is, are overseas markets catching up to the Wall Street rout and therefore U.S. stocks can reset now that everyone is on the same page, or should Wall Street take any overseas weakness as a leading indicator that the selloff is going global and therefore take that as a reason to keep on selling. And shit, let’s be honest, we were already in that situation last week. Remember, China had an abysmal go of it:

China

And the DAX found itself in all kinds of trouble as German stocks posted their worst week since February 2016:

DAX

More broadly, the EuroStoxx 50 fell through its 200-DMA on Friday just a day after breaching its 50-DMA:

SX5E

All of this hinges to a certain extent on whether DM yields continue to rise and of course on what the dollar does.

So it’s with that as the backdrop that we wanted to take a quick look at Mideast markets on Sunday and generally speaking, it’s not pretty. “Markets in the Middle East are correcting after the negative performance of international markets over the weekend,” Marwan Shurrab, head of high net-worth and retail equities brokerage at Al Ramz Capital in Dubai told Bloomberg, adding that “there is selling pressure and profit-taking across the board.”

Yes, “across the board” and in Qatar (a powder keg for geopolitical uncertainty since last summer), the pain is particularly acute with the QE falling nearly 3%:

QE

All 20 members on the benchmark fell.

Dubai’s DFM General declined to its lowest level in a month:

Dubai

Saudi shares held up reasonably well, but still fell 0.7%:

Saudi

And in Israel, the TA-35 is down sharply:

Israel

So again, the question is always whether everyone is playing catch up or whether a global rout ends up feeding back into its source which then throws gas on the fire on the way to making it impossible to distinguish which markets are leading indicators and which are simply responding to what happens elsewhere.

Stay tuned.

 

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2 comments on “Mideast Stocks Slide As World Markets Respond To Wall Street Rout

  1. Melt down, up, sideways this is going exactly as planned the Central Banks cabal needed some breathing room and the suspender boys are more than willing to buy the bottom of this dip and continue on their merry way to 30K. OOOOrrrr the real correction is just starting to light little fires all over the bubble world and bonds get out of control then stocks, go boom.

    Create the big dipper and short it all the way to the little dipper and beyond. the fight is on for the survival of fiat toilet paper, who will get wiped out (pun intended) first as the crap piles up and central bankers high-tail it to save haven Switzerland and hide-out the rest of their miserable lives. The debt mess so big it encompasses our entire globe and can only end in tragedy. Millions of people will be hurt and as the problems deepen the unavoidable will most assuredly happen war and plenty of it.

  2. let’s hope so.
    no war is necessary, unless it’s against the–hmm.
    a good old depression and bread lines will do, that and vote the bastards out.
    sb

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