US attacks may impact Cairo market as well
Last week’s terrorist attacks in the US are likely to hit the economy of the entire world including Egypt. Since the US controls 25 percent of global trade and 40 percent of fiscal transactions, the heat would no doubt spread and leave its marks throughout the world, in the form of monetary losses or even recessions in some countries.
According to the Egyptian Economy Minister Yussuf Butrus Ghali in a statement given during the Euromoney Economist Forum in Cairo, the magnitude of the effects that would stem from the attacks could not yet be predicted, however the minister recommended that Egypt as well as other countries get ready.
It is still early in the day to find out what will be the nature of today’s trading on the New York Stock Exchange (NYSE), as it hasn’t reawaken yet. So far, it is apparent that there has been a drop in the Asian bourses and that Hong Kong has made double-digit losses since the attacks.
All in all, it is the desire of all investors to overcome the nervousness and try to soften the blow. With the global economy on a decline, economists all over are concerned that a sharp fall in US stocks will undoubtedly spillover and set off a global economic crisis, encompassing Egypt as well. — (Mena Report)
© 2001 Mena Report (www.menareport.com)
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