Saturday 28 November 2009

Dubai shockwave hits global markets

Tremors from the shock request by Dubai’s flagship government-owned holding company for a debt standstill spread through global equity markets on Friday, triggering a sell-off in Asia and heavy losses on Wall Street.

While European markets staged a modest but nervous rally after heavy sell-offs this week, investor sentiment remained jittery amid a scramble to assess the broader fallout of the problems of Dubai World.

“There is still nervousness,” said Chris Furness, strategist at 4Cast consultancy. “This has made people recognise the risk of a systemic global ripple.”

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