Egyptian shares are currently so popular like rotten potatoes. The stock exchanges in Cairo, but also in many neighboring countries recorded, painful losses. Israel is particularly affected. And major European indices such as the DAX started behaving in a week. But now the DAX shot early Tuesday morning. Is it for German investors therefore do not care what happens in the Land of the Pharaohs?
course not. Although the direct economic impact is small. The trade of most companies in the region account for only a small proportion of transactions. But the region is now the focal point of views regarding the Middle East conflict and any uncertainty there, the world economy take on a variety of ways.
is one of them the price of oil. Has risen significantly since the outbreak of the riots and is now seeking a new high again after the collapse of the financial crisis. That is poison for a world in which inflation anyway is increasingly an issue.
And no one should underestimate the influence of a possible new conflict on the southern edge of the Mediterranean. The worst possible variant is here that the former despots in the Arab neighbors of Israel gradually be replaced by Islamic regimes and the Middle East conflict escalates - to armed conflicts.
However, to date is not certain that it actually will happen. Many of the demonstrators not claim supremacy of the Koran, but simply an end of oppression. It is therefore possible that the countries are actually on the way in a democracy. The will, however, even if it succeeds, will be accompanied by uncertainty, turmoil and crisis.
For investors, therefore: wait and strong mint tea. Prior to his portfolio but should prepare for possible increased volatility in financial markets. And heal the world of shares so far seen a tiny bit more careful.
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