Tunisian stocks tumbled to the lowest level in almost a year as violence escalated, forcing the government to impose a night-time curfew. The cost of protection against default by the North African country rose to the highest since 2009.

Eoin Treacy's view Small illiquid markets such as Tunisia and others globally are capable of incredible moves both up and down. This is at least in part because they are relatively thin and illiquid; allowing a relatively small number of reasonably sized funds to dominate the market. Small markets such as Tunisia rise on a swell of liquidity as investors compete for access. However they are equally capable of falling abruptly as a few large investors attempt to take profits. Bids disappear, prices plummet and when this takes place in a politically charged environment, confidence is damaged even more. The Tunisian Index broke emphatically below its 200-day MA yesterday and extended its decline today. A clear upward dynamic will be required to check the decline.