Gulf stock markets are likely to extend losses in the coming weeks unless European policy makers succeeded in coming up with convincing solutions to address its persistent sovereign debt crisis. “The reality is that as those charged with leading the eurozone out of this crisis appear to have moved further apart, it seems to me that short of a miracle the euro will just keep heading south,” an analyst said. The Tadawul All Share Index (TASI) fell 2.2 percent on weekly basis, closing at 6,086.10 points. Saudi analyst Mohammad Anqari attributed the decline mainly to the failure to work out solutions for euro debt debacle. While Saudi Arabia and other Arab oil-producing countries stood to lose financially as a result of falling crude prices, Saudi public spending would not be cut thanks to the huge surplus which the Kingdom has accumulated over the past years, he said. Arab markets, which maintain close affiliations with the European economy, are downbeat over the temporary solutions being proposed for the euro zone debt problem, mainly for calming down global markets, and do think that what is needed are effective long
