Dubai markets fell on the first trading day since the emirate's request to delay debt repayments. But U.S., Asia and Europe markets climbed after the UAE central bank announced it'll provide additional liquidity to commercial banks if needed. Dennis Gartman, founder of The Gartman Letter, shared his insight on what lies ahead.
“We shouldn’t be surprised by oil [prices] coming down at all,” Gartman told CNBC.
“If Dubai is going to do anything—and it’s not the big brother, this is the littler brother taking care of the big brother who has gone out and has made a fool of himself—you’ve got Abu Dhabi with 80 billion barrels of crude oil. The only way it’s going to be able to resolve these circumstances is to pump crude oil at a more aggressive pace.”
Going forward, Gartman told investors to expect some downward pressure on commodities.
“We’ve had an awful great bull market thus far in many commodity prices,” he said. “Copper, for example, has gone up over $3 per pound, gold and silver have had a big run...I don’t think there’s going to be a dramatic selloff, but there’s going to be more pressure on the downside than there will be on the up.”
As to currencies, Gartman "fears" the British pound may face the most pressure as it has the greatest exposure to Dubai.
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No immediate information was available for Gartman or his firm.