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Gulf markets fall after oil price drop and Paris attacks

Dubai dropped 3.65 per cent, hitting an 11-month low

Major bourses in the Middle East fell on Sunday (November 15) in response to cheap oil and the brutal attacks on Friday night in Paris.

In the biggest drag in the region, Dubai Financial Market’s General Index tumbled to an 11-month low. It dropped 3.65 per cent to 3146.21 points at the close, diving below technical support.

The Abu Dhabi’s index fell 2.5 per cent to 4,097 points, a 12-week low, while Saudi Arabia’s index was 2.8 per cent down as oil prices saw a major slump last week, the biggest weekly loss in eight months.

US Light Crude fell 5.1 per cent on Thursday and Friday alone, after Middle East bourses last traded. Brent crude is within $2 of a new six-and-a-half-year low, according to news agency Reuters.

Qatar’s index dropped 2.8 per cent while Egypt lost 3.9 per cent to a 23-month low.

The shaky stocks may witness another sell-off as global markets, hurt by the carnage in French capital, are expected to fall when they open on Monday.

“We would expect to see The CAC trade lower along with the EUR. Wouldn’t be surprised to see markets down 2-3 per cent, maybe even more,” says Yogi Dewan, the chief executive officer of Hassium Asset Management in the UK.

“Sectors will be impacted in Europe such as insurance, travel and leisure. This will likely spill over into other jurisdictions. We also expect oil to trade higher as sentiment towards Syria and the Middle East deteriorate,” he tells AMEinfo.

That all said in a few weeks time financial markets will likely see yesterday’s events as old news and will refocus on the ongoing fed tightening and China growth story.

On Friday, militants killed 129 people and wounded more than 300 in seven coordinated attacks across the French capital.