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Gulf markets may fall sharply if Trump wins

Dubai’s market could be the most volatile in the region

Investors face possibility of shock win by Trump in US presidential election

US stock futures have already dropped and MSCI Asia Pacific Index outside Japan is also down

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 by 4.3 per cent and the MSCI Asia Pacific Index outside Japan is down 3.2 per cent.

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

Sensitive markets

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.