Sunday 15 January 2012

gulfnews : Eurozone's rating cut likely to spark selling in Gulf

The region's stock markets are likely to come under selling pressure this week following credit rating agency Standard & Poor's downgrade of nine countries in the Eurozone — with the level of sell-off depending on how the global markets react to this development, analysts say.
"The downgrade is definitely going to be negative for all markets, including regional ones. However, their full impact will be felt only during the latter half of the week when we get to see international markets' reaction," Mohammad Ali Yasin, chief investment officer at CAPM Investment told Gulf News by telephone.
"We will probably see a strong regional markets reaction. However, it will fall short of a major sell-off as, fundamentally, economies in the region are strong and international oil prices are still close to $100 (Dh367) a barrel," he added.

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