European and US stocks fell on Monday and the euro fell across the board on concerns that Italy could be the next debt victim.

“You have fears from global markets, you have the seasonal affect of low volumes and Ramadan is coming up, which is a major factor because people are just waiting for the results to come out before they pack up,” said a Riyadh-based fund manager who asked not to be identified.

Saudi Arabia’s Tadawul All-Share Index (TASI) slumped to a two-week low to 6,567.14 points, wiping out gains driven by petrochemical producer Yanbu National Petrochemical Co. (Yansab) on estimate-beating second-quarter results.

Yansab bucked the trend and gained 2.4 percent. The petrochemical producer, a unit of Saudi Basic Industries Corp., posted quarterly profit of SR963.67 million ($257 million), up from SR502.38 million a year earlier due to higher product prices and sales.

The Saudi benchmark eased 0.2 percent to its lowest level since June 28.

Food products company Almarai ended on a three-week low after saying it will reverse milk and yoghurt price increases with immediate effect following a government resolution. Its shares dropped 2.4 percent.

In Egypt, the benchmark index slumped to an eight-week low, down 2.9 percent to 5,116 points as investors fret that anti-government protests may escalate and see little clarity on how the government will react.

Elsewhere, Dubai’s benchmark fell 1.2 percent to 1,549 points, with lender Emirates NBD and heavyweight Emaar Properties down 5.8 percent and 1.6 percent respectively.

Kuwait’s index declined 0.5 percent to 6,184 points, down 11.1 percent so far in 2011.

“We have so many negative effects on the market and there is no catalyst,” said Badr Al-Ghanim, Global Investment House vice-president of asset management in Kuwait.

“Everyone is having problems implementing (capital markets laws. Even Q2 results will be below expectations,” he added.

Kuwait’s newly formed Capital Markets Authority unveiled a new set of rules in May, including a requirement of separate licenses for investment firms to operate their lending and investment businesses. Seven of the ten largest Kuwaiti stocks fell on Monday, with National Bank of Kuwait falling 1.7 percent and Zain down 2 percent.

The Omani index eased 0.1 percent to 5,985 points.

The Qatar benchmark gained 0.1 percent to 8,497 points.

The Bahrain measure eased 0.04 percent to 1,319 points.