DIFC Weekly Economic Commentary β 24 June 2012
The elections in Greece allayed fear of disruptive events, but left open all the unsolved issues that beset the governance of Euroland. Global equities were hit by Moody’s downgrade of 15 of world’s biggest banks in addition to weak data across the board. Regional markets were mostly down, on global cues, weaker oil prices, and as the region continued to be affected by bad news including MSCI not reclassifying UAE and Qatar and the delay in announcing Egypt’s election results. The dollar gained against the euro; the yen and pound tumbled and most Asia currencies dropped, with the rupee hitting record lows. Crude oil prices picked up from the 18-month low while gold prices tumbled, as last week witnessed its biggest one-day decline since end-Feb.