Spectre raised of a 'major sell-off' - The National

Standard Chartered has warned that credit markets in the Gulf could undergo a "major sell-off" if Greece abandons the euro, as world markets lurched through further choppy trading sessions and the troubled European currency fell further.

The London-based bank, which generates most of its income in Asia, Africa and the Middle East, said Greece returning to the drachma would lead many emerging market indexes to fall further, even though the threat of a divorce from the euro zone has already rattled markets for many months.

"For the Asian and Gulf Cooperation Council [GCC] credit markets, we would expect a major sell-off in the event of a Greek exit from the euro area," the bank said in a research report.

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