Gulf markets fall sharply on possibility of Trump election victory

DFM down 2% on opening, Abu Dhabi down 1.79%
Gulf markets fall sharply on possibility of Trump election victory
By Reuters
Wed 09 Nov 2016 10:29 AM

Stock markets in the Gulf look set to fall sharply in line with global bourses on Wednesday as investors face the possibility of a shock win by Donald Trump in the US presidential election.

US stock futures have dropped 4.3 percent and the MSCI Asia Pacific Index outside Japan is down 3.2 percent.

Brent oil futures are down 2.9 percent at $44.70 a barrel in Asian trade, a blow to oil-sensitive shares in the Gulf, especially petrochemical stocks in Saudi Arabia.

As the Gulf market most sensitive to foreign fund flows, Dubai's market could be the most volatile in the region.

Egypt's stock market has been soaring in response to last week's currency float, partly because of buying by foreign investors, but the blue chip index closed Tuesday well off the day's high, suggesting the rally might already be losing steam.

The index finished at 10,097 points, near major technical resistance on its February 2015 peak of 10,066 points. In the absence of a decisive break above this level, more profit-taking is possible.

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