Dubai's index made its largest gain in three weeks on Thursday, rebounding from Wednesday's 15-week low as early-morning gains in Asia drew in local bargain hunters, while Egypt extended losses ahead of next week's presidential election.
Weakness in hard-pressed banks and insurers weighed on Britain's top share index on Thursday, as investors fretted over their exposure to euro zone debt as the political impasse in Greece heightened the possibility of that country exiting the euro.
Asian stocks rose, with the regional gauge poised to end a six-day losing streak, as faster-than- estimated economic growth in Japan and optimism the Federal Reserve will do more to stimulate the US economy outweighed concern Greece’s debt crisis is worsening.
Saudi Arabia's bourse recovered from a 12-week intraday low, but ended slightly lower with petrochemical and banking stocks weighing as gloomy global markets prompt investors to cut their exposure.
Emerging equities plunged 2.7 per cent on Wednesday and currencies fell heavily, forcing several central banks to intervene as investors fearing a noisy Greek exit from the euro fled for the safety of US dollar assets.
Despite multi-billion-euro interventions over the past months, efforts to keep the 17-nation European economic bloc intact appear to be deteriorating with Greece likely to be the first to exit, a Copenhagen-based economist said.
World shares fell and the euro touched a fresh four-month low on Wednesday, as investors fled riskier assets on fears a Greek exit from the euro zone was more likely after talks to form a new government failed, forcing another round of elections.
Asian stocks fell, with a regional benchmark index headed for its biggest loss this year, as Greece’s move to call new elections increased concern the country will decide to leave the euro and derail efforts to contain the region’s debt crisis.
Gulf markets ended mixed as some stocks bounced off with bargain hunters picking up stocks with Saudi Arabia and Dubai ending in green territory.
European equities bounced up from 2 012 lows on Tuesday, lifted by surprisingly strong German economic data, but concerns about the future of the euro zone and the possibility of Greece's exit from the bloc kept investors in a cautious mood.
