MIDEAST STOCKS-Saudi tests technical support, Egypt slides on rate outlook

Saudi Arabia's stock market retested technical support and Egypt's market also dropped early on Sunday as the prospect of a U.S. interest rate hike loomed. The Saudi stock index dropped 1.1 percent to 6,883 points in the opening minutes, falling below its August low of 6,921 points. Money market rates have already been rising in the Gulf as liquidity shrinks because of lower oil revenues, and higher U.S. rates could intensify the simultaneous fiscal and monetary squeeze in the region.