| The world's capital markets have been roiled this year by rumors that sovereign wealth funds of oil-dependent states are selling foreign assets to redirect money home to plug budget deficits and repatriate capital. Some institutions, such as Malaysia's large pension funds and the Saudi Arabian Monetary Agency, the kingdom's central bank, are indeed answering calls by their governments to help bolster their domestic economies in different ways.
It appears, however, that the markets are also worried that major sovereign savings funds like the Abu Dhabi Investment Authority (ADIA) and the Kuwait Investment Authority may be major sellers of stocks, suggesting that they are pulling out of the markets because they are being called upon to fund government spending plans in the face of low oil prices...............................................Full Article: Source |