With all eyes focused on tonight's China open (and the "oops, China matters after all" meme), the Middle-East has fallen off the front (or back) pages of mainstream media. However, the last few days have been a bloodbath (analogistically as opposed to literally) across the Middle-East with Saudi stocks plunging 2.5% overnight (down almost 13% in the last 5 days) and every market from Bahrain to UAE all tumbling below August lows.
Saudi's Tadawul Stock Index has collapsed in the last few days and is now unchanged since May 2009
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We warned in April 2014 that Mid-East markets were utterly-exuberant when an IPO for a company that "doesn't have current operations" was 36 x oversubscribed... [7]it appears we nailed that.
But it's not just Saudi Arabia. From UAE to Kuwait, Mid-East equity markets are tumbling...
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Of course, the biggest stress is seen in Mid-East FX markets where implications of major devaluations, de-pegging are growing ever wider...
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Charts: Bloomberg
