Overnight markets: Turmoil

Stocks dropped around the world, reports Bloomberg, as Treasuries jumped and CDS climbed after Dubai’s sudden attempt to reschedule its debt. The dollar briefly fell below Y85, a 14-year low, boosting speculation Japan will intervene. US markets were closed Thursday for Thanksgiving, but futures on the S&P500 Index fell 2.2% on Friday. Asia bond risk meanwhile climbed, with the Markit iTraxx Japan index jumping as much as 23.5bp; it was up 18bp at 167bp mid-morning in Tokyo.