Posted on 08/06/2011 9:20:07 AM PDT by DeaconBenjamin
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 Tadawul All-Shares Index closed down 350.43 points to 6,073.44 as all shares tumbled following a tumultous week for global markets which was capped by Standard & Poor's cutting the US credit rating over its $14.3 trillion deficit and debt.
"The S&P rating and problems in Europe... have scared investors," said financial analyst Abdulwahab Abu Dahesh.
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.
"Saudi shares have reacted to two events: sharp drops on Thursday in markets, especially oil, and the S&P cut of the US rating," economist Mohammed al-Omran told Al-Arabiya news channel.
Global oil prices fell sharply last week on fears of a slowdown in the US but recovered after better-than-expected jobs data on Friday.
Saudi Arabia sits on one-fifth of world oil reserves and is the largest exporter of crude oil.
(Excerpt) Read more at telegraph.co.uk ...
That is exactly why I thought that the free credit report crowd wouldn’t have the guts to downgrade America’s rating. I thought all these threats were just part of the poltical game in Washington. Man, was I wrong.
Can you Short Endex funds?
[ While you’re at it, keep your rabid envriofascists away from Canada’s oil-sands. ]
Right..... and keep the canadian companys away from Alaskas natural gas and Pebble mine..
I agree, canada should stay in canada..
That was my initial thoughts too, but the real blood bath will be in the bond markets. I see a lot of that money going overseas, but I also see some of it going to domestic blue chip stocks, which may temper the drop. We will see Monday.
MAny wells in Alaska are capped.. some say...
America could be awash in natural gas AND OIL... with right leadership.. Most of Alaska has extensive coal seams... We could sell that coal to China.. THEY WANT IT.. Not only production for America markets but export to chinese markets..
BUT we don’t have the right leadership... YET..
[ You need to learn to take a less Americacentric view. There is a big world and lots of oil customers out there ]
Most of Alaska is coal seams.. I say sell it to China..
ALL THEY WANT... all it would take is a few railroad spurs.. to those places.. There is more coal there than several country’s have.. enough to last century’s..
Apparently, you don’t like foreign direct investment. That would put you in good company with the socialists in Canada.
[ Apparently, you don’t like foreign direct investment. That would put you in good company with the socialists in Canada. ]
Not exactly.. foreign investment is fine but as minor partners..
Major socialist investors(Canadians) should be limited..
[ Then, you would be in good company with the moderate socialists in Canada. ]
Moderate socialists are still progressives.. there are no moderate socialists.. it is a myth..
All socialists are democrats.. meaning proponents of democracy...
Democracy being Mob Rule by mobsters is the rule..
No democracy has even been democratic.. it is a lie..
Democracy is indispensable to socialism. The goal of socialism is communism. -V.I. Lenin
The meaning of peace is the absence of opposition to socialism .-Karl Marx
Thks
Thanks DeaconBenjamin.
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