Posted on 08/06/2011 10:02:19 AM PDT by Steelfish
Saudi Stock Market First To Plunge On S&P Downgrade Saudi Arabia's stock market dropped 5.46pc on Saturday as it became the first exchange to react to the historic US credit downgrade.
Saudi Arabia's Tadawul index fell 5.46pc on Saturday.
The Tadawul All-Shares Index closed down 350.43 points 6,073.44 as all shares tumbled following a tumultous week for global markets which was capped by Standard & Poor's cutting the US credit rating over its $14.3 trillion deficit and debt.
"The S&P rating and problems in Europe... have scared investors," said financial analyst Abdulwahab Abu Dahesh.
The Saudi market was the first to react globally to the S&P statement late on Friday, with the start of the trading week in Saudi Arabia, while all other markets remained shut for the weekend.
Analysts expect markets in Asia and Europe to follow the Tadawul lower on Monday.
"Saudi shares have reacted to two events: sharp drops on Thursday in markets, especially oil, and the S&P cut of the US rating," economist Mohammed al-Omran told Al-Arabiya news channel.
(Excerpt) Read more at telegraph.co.uk ...
Here we go!
all this and an Iranian Revolutionary Guard commander is now in charge of OPEC
we live in interesting times
A canary in the coalmine? Will Monday bring a financial megatsunami sweeping out of Asia to engulf the world?
I’ll be watching the Asian markets starting tomorrow afternoon CET; it’s going to be interesting; something I call the “turd in the pool effect”. The pool is the financial markets, the turd is some bit of particularly bad or unexpected news. Did the markets price in a US debt downgrade? Guess we’ll all find out real soon..........
We could be in for a rough ride. I’ll be interested to see when, or if, any bargain-hunters come into the markets.
What’s your gut on investor confidence in Asia? Or is there any confidence left?
Chinese hegemony both financial and sociopolitical is becoming more and more ubiquitous in Southeast Asia.
Even with a change of US leadership in 2012 the damage would have already been done and China would by that time be more entrenched in the region - not that they are not now.
Rather than try to play leader over here anymore or speak with any supposed authority America needs to look inward.
That’s what I was afraid of.
Basically, sounds like rough times ahead until 2012.....longer, if Obama is re-elected (which of course, is not impossible).
Unless China implodes, sounds like their the new masters of Asia, at least for the forseeable future. To be honest, I’m somewhat skeptical of their claims of phenomonal growth, at least at the rates they’re claiming. I do think they are growing, but not as strongly as their numbers claim.
Japan? I think they’re toast for the time being. If I recall corrrctly, Japan’s debt/GDP ratio is quite high, not to mention other systemic problems.
Note that the Saudi stock market trading week is Saturday through Wednesday. So the Saudi stock market is catching up from Thursday’s rout, when the SPX was down over 5% (and some markets, like Brazil, were down over 8%).
I should know that since I have people there and we are always off on Friday and Saturday.
You are correct of course sir.
It is going to be bad. Very bad.
Moreso for countries strongly linked to the US.
Those are my predictions and btw I've had a better track record that the talking heads on the tube recently.
Dow futures opens at about 1900 Eastern Time tomorrow. Expatguy should know when the Nikkei futures open or the market there opens. I think that will be the first indication of reaction that matters.
There is nothing happening in the markets that I am aware of right now. Even after hours trading is stopped.
Doing this announcement on a Friday evening was just downright hateful. They knew what they were going to do early last week.
The David Beers guy that heads the S&P bunch was just on CNN and says uhhhhh more that oblabla. Don’t judge a book by its cover but he seems like a dim bulb.
I've been hearing a lot lately about the ASEAN conference and Chinese military aggressiveness in the South China sea.
China wants the undersea oil that happens to be in the territorial waters of Vietnam, Malaysia, Indonesia, and Philippines. A little thing like international law and sovereign territory don't seem to mean much to China (unless it's Chinese territory).
I expect when the US is out of the way, when the Chinese are seizing Taiwan they won't stop until all of the South China sea is under their control too.
What can the Philippines do except give in when there is no US to back them up? If there is anything of value down there, China will take it.
Mainland SE Asia has been pushing the chinee back for centuries.
It’s easier to forecast volatility than the short-term direction of the market. I forecast that volatility will go up, and that it will permanently remain at a higher level than what we have experienced over the past year.
This said, there was panic selling on Friday. T-bills briefly had a negative yield. The % of S&P 500 stocks trading below their 50 day moving average is back at 2008/9 levels:
http://stockcharts.com/h-sc/ui?s=$SPXA50&p=D&yr=3&mn=0&dy=0&id=p14272540238
Same with the 200 day moving average:
http://stockcharts.com/h-sc/ui?s=$SPXA50&p=D&yr=3&mn=0&dy=0&id=p14272540238
I’m not saying that the markets will move up on Monday, but I wouldn’t want to load up on short positions here, either.
I will be FReeping when they open. :-)
When I lived in Kuala Lumpur in 2002-03, the Ringgit was 3.84 to the dollar. What is it now?
the SGD is right about 1.20 to the dollar -
It has been dropping almost daily here - some of the money changers here in Singapore now are not even accepting USD at the moment - which was a big shock to me -
And some had the audacity to think that obama would not come through with change.
Here’s some change. Now we can see it.
And hope.
Aren’t you hoping for things now ?
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