DIFC Weekly Economic Commentary â€“ 27 May 2012
The long Greek journey into the night continues to send shock waves throughout the markets (with additional input from Spain’s Catalonia, after Bankia’s bail-out, needing help to refinance its debts and ongoing banking sector troubles) which have been highly volatile around a downward trend driven by entrenched risk aversion. Regional markets were mixed, with Egypt’s exchange gaining the most amongst its counterparts on domestic elections. The euro hit a 2-year low against the USD on worries about a collapse in Greece and an exit from the euro zone. Oil slumped and gold has lost its allure as a safe haven.