Saudi Markets

StevieJ

I just saw this story in the Telegraph

Saudi Arabia's stock market dropped 5.46pc on Saturday as it became the first exchange to react to the historic US credit downgrade.
The Saudi market was the first to react globally to the S&P statement late on Friday, with the start of the trading week in Saudi Arabia, while all other markets remained shut for the weekend.
Analysts expect markets in Asia and Europe to follow the Tadawul lower on Monday.

http://www.telegraph.co.uk/finance/financialcrisis/8686045/Saudi-stock-market-first-to-plunge-on-SandP-downgrade.html

Is this really poor journalism? or is someone trying to spook the markets? When I look at the Saudi exchange it appears that they havn't been open for two days, Ithink we know what happened to world markets during that time :cool:

http://www.tadawul.com.sa/wps/portal/!ut/p/c1/04_SB8K8xLLM9MSSzPy8xBz9CP0os3g_A-ewIE8TIwN3vwBLA09vM1dPT5cgA4MQM6B8JJK8QbCpgYGniU9YiLOPu7GBgQFJut0DwkxBuoONggO8jA08jQjo9vPIz03VD07N0y_IDY0od1RUBADlRhrp/dl2/d1/L3dDb1ZBQSEhL3dHa0FKREFOZ0EhIS9ZQkpKdzQ1dy83X04wQ1ZSSTQyMEdOUDkwSUs2RUlJRFIwMDM0/?chart_tasi_current_sector=TASI&TASIactionString=change.to.last.6.days

sabretoothtigger

Well spotted, yea it could be some confusion. -5% for Thursday, Friday and Saturday in total does not seem to be that bad

First western type market is Japan with currency about 8pm onwards etc


Here is a brief take on why debt downgrade might matter. I think it'll take time to occur really

http://www.youtube.com/watch?v=FhB97XF9yTQ&feature=player_detailpage#t=394s


Basically rates are long over due a rise. If money costs more it pressures some business however actual inflation is going to be high in my opinion.
Perception could be the biggest negative

QE3 or why it doesnt matter

http://www.cnbc.com/id/44029585/

StevieJ

Also Saudi markets down less than 5% for the week (from Aug 1) UK market down 10% during the same period. We also have to take into consideration the 10% drop in the oil price which should affect Saudi markets disproportionately. All in all they seem to have taken the US ratings change quite serenely:)