Analysts Say Saudi-Canada Fuss Is Noise, But Doesn't Look Good - Bloomberg

Analysts Say Saudi-Canada Fuss Is Noise, But Doesn't Look Good - Bloomberg:

Not helpful, but unlikely to have much immediate market impact.

That’s how investors are describing Saudi Arabia’s decision to suspend diplomatic ties and new trade dealings with Canada over that country’s call for the release of a women’s rights activist. The spat came as the Middle East’s biggest economy, which allowed foreign investors direct access to stocks in 2015, steps up measures to lure investors as it tries to diversify its oil-dependent economy.

“There are some things that look positive while there are others that look as regressive as we have seen in the past,” said Marie Owens Thomsen, global head of investment intelligence at Indosuez Wealth Management in Geneva. “As an international investor, arguably, you really don’t know at which leg to stand on. Even if it doesn’t necessarily have a direct impact on business dealings, it doesn’t help.’’