MIDEAST STOCKS-Markets sunk by U.S. rate hike threat | Reuters

MIDEAST STOCKS-Markets sunk by U.S. rate hike threat | Reuters:

"The threat of a U.S. interest rate
hike in December dragged down major Middle East stock markets on
Sunday, illustrating how fragile investor sentiment in the
region has become in the face of low oil prices. 

Short-term U.S. bond yields rose to their highest in five
years on Friday after very strong U.S. jobs data for October
boosted the likelihood that the Fed will raise rates before
year's end.

Money market rates have already been rising in the Gulf as
liquidity shrinks because of lower oil revenues. Higher U.S.
rates could intensify the simultaneous fiscal and monetary
squeeze in the region."



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