MENA Stocks: Warning Signals From Global Markets

Middle Eastern stocks have not yet sold off to the same degree as their Asian and developed market counterparts, but we think they could be in for a correction over the coming days, for which reason we are putting our bullish view on hold for the whole of the GCC and Egypt. The correlation between sentiment in the Middle East and the rest of the world is still strong, and we are somewhat concerned about a number of indicators, most notably the sterling-yen cross rate: the yen has rallied very strongly over the weekend, indicating renewed levels of risk aversion

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