Is the Crash coming finally? With global stocks tumbling, the Middle East stock markets were hit the hardest. http://www.bbc.co.uk/news/business-34032776 The Dubai Financial Market closed down 7%, while the Saudi exchange also lost 7% after Fitch ratings agency cut its outlook for the country . . . investors are concerned about a slowdown in China and the knock-on effects for the global economy . . . in the Middle East, there is particular concern about low oil prices, which are down by more than a half this year . . . moods were further dampened by a report from Fitch which cut the agency's outlook on Saudi Arabia from "stable" to "negative".
I wouldn't go as far as saying "the Crash" is coming, I don't think the sub-prime crisis, truly ever left us. We're going through a period of extreme volatility and extreme uncertainty. The US Federal Reserve indicating that it will enter into a period of increasing interest rates, has thrown many "emerging market" a bit of a curve ball. Reserve Bank policy makers world over are scrambling to ready themselves for an increase in the US Fed Reserve interest rate; some will fair better than others as global markets still remain frail. The capital that flooded emerging markets when minimal returns could be earned in the US, could very well leave those markets when the rates in the US increase. Most of what has happened over the past couple of weeks has largely been a reaction to the devaluation of the Chinese Yuan, which is seen by many as an indication of slowed growth in the economy that is currently driving the world economy; this under pinned with the uncertainty around US interest rates, has resulted in some "flight to safety" by investors and hence the tumbling stock market prices, which has been seen in Asia and the world over.
