Middle East equity markets are braced for another rocky week, with volatile global exchanges likely to dictate direction in the absence of compelling local factors to distract investors from negative news about the world economy.
The focus on the global economy means a declining pool of active traders is not discriminating much between the fundamental factors behind individual Middle East stocks. Instead, it is trying to ride the ebbs and flows of global sentiment to make a quick profit on the most liquid names.
Long-term investors and funds remain largely inactive, so markets are listless and will lack direction until a clearer picture emerges of the chances of a U.S. recession and the ultimate consequences of the euro zone debt crisis.
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