Market panic spreads to the Middle East

[marmar]

from Bloomberg:



Dubai Shares Drop Most Since February
By Zahra Hankir - Aug 7, 2011 9:18 AM ET


Middle East shares tumbled, sending Dubai’s index down the most since February, after Standard & Poor’s cut the credit rating of the U.S. for the first time and amid rising concern the global economy is faltering.

Emaar Properties PJSC (EMAAR), developer of the world’s tallest tower, slumped 5.3 percent. Arabtec Holding Co. (ARTC) dropped the most since March after it said second-quarter profit fell 74 percent. The DFM General Index (DFMGI) lost 3.7 percent, the most since Feb. 28, to 1,484.31 at the 2 p.m. close in Dubai. The measure has plunged 12 percent from this year’s high in April, entering a so-called correction. Israel’s TA-25 Index slumped 6 percent, the most since November 2008, at 3:51 p.m. in Tel Aviv.

“We’re playing catch-up and trying to anticipate and price in the response to the downgrade by global markets tomorrow,” said Julian Bruce, equity sales head at EFG-Hermes Holding SAE in Dubai. “The impact on stock prices that we’re seeing reflects the feelings of uncertainty” about global growth, he said. ............(more)

The complete piece is at: http://www.bloomberg.com/news/2011-08-07/dubai-shares-fall-most-since-january-lead-gulf-drop-on-u-s-rating-cut.html


.........


Israeli Stock Index Tumbles Most Since 2008
By Susan Lerner - Aug 7, 2011 10:18 AM ET


Israel’s benchmark stock index plunged the most in almost 11 years after Standard & Poor’s lowered the U.S. credit rating and amid concern the widening sovereign debt crisis in Europe will stall global growth.

Israel Discount Bank Ltd. (DSCT), the country’s third-largest lender, skidded 10 percent. Nice Systems Ltd. (NICE) slumped the most since November 2008. All 25 shares in the TA-25 Index tumbled, pushing the gauge down 7 percent, the biggest decline since October 2000, to 1,074.27 at the 4:30 p.m. close in Tel Aviv. The index is near the so-called bear-market territory after retreating 19.9 percent from a record high of 1,341.89 on April 21.

“It could be a turbulent market in the next few weeks,” said Ron Eichel, chief economist and strategist at Meitav Investment House Ltd. in Tel Aviv. “If there’s a storm globally, it’s going to affect Israel, which has very large exports to the U.S. and the eurozone.” .............(more)

The complete piece is at: http://www.bloomberg.com/news/2011-08-07/israeli-stocks-tumble-most-since-november-2008-on-u-s-rating-cut-europe.html

[originalpckelly]

1. Double plus ungood.

Wait until we see what happens in western Asia.

[MilesColtrane]

2. Contagion

Monday's not going to be pretty.