Afternoon all.
Not many markets open on Sunday daytime, but the main Saudi stock exchange is one and it slumped 7.41% in today’s session, the biggest single day fall since markets were crashing in the middle of March.
A worrying sign for risk appetite perhaps and maybe a message that Oil is not expected to recovery as quickly as some are forecasting. Shares in $SAOC joining the sell-off, down over 5% for the day.
The slump in the Saudi index follows a downgrade by $MCO on Friday and with debt stress increasing and growth outlooks shrinking around the world, fears that this could be part of raft of downgrades to be issued by Moody’s could start to effect investor sentiment.
It will be interesting to see if there is any spillover from this. The Saudi market is a minor index in the financial world but it is far from insignificant with Saudi money becoming an important part of capital markets in recent years in financing deals and projects around the world thanks to their Oil profits.
Stay safe, thanks for your time.
$SPX500 $GER30 $NSDQ100
