Growing Worry Spook Financial Markets

Secular-driven change often creates a power vacuum for non-secular groups to exploit. The financial markets have reacted not only to the possibility of change not only in Egypt but also other more sensitive countries within the Middle East.

The Equity Diffusion Index (DI), residing in netural territory, doesn't offer much insight.

S&P 500 and COT Futures and Options Equity Diffusion Index (DI)


Headline: Fitch downgrades Egypt outlook to negative

Fitch Rating on Friday revised down its outlook for Egypt, dropping it to "negative" as mass protests in the country turned violent, engulfing the capital and other cities in a serious challenge to President Hosni Mubarak's 30-year rule.

Fitch said it was holding steady Egypt's other ratings, including its long-term foreign currency issuer default rating, which was held at the investment grade BB+.

Source: finance.yahoo.com