Published on Fri, Nov 27, 2009 at 08:25 | Source : Moneycontrol.com
Updated at Mon, Nov 30, 2009 at 15:28
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Global mkts panic on Dubai's debt rescheduling
Global markets were panic on concerns about Dubai's debt rescheduling. The Government of Dubai confirmed that DP World and its debt are not included in the restructuring process for Dubai World announced earlier today.
Global markets are in panic mode on concerns about Dubai's debt rescheduling. The Government of Dubai confirmed that DP World and its debt are not included in the restructuring process for Dubai World announced earlier today.
Europe witnessed its biggest drop in seven months: The CAC was down 3.4%, DAX down 3.25% and FTSE down 3.2%.
Asian markets opened sharply lower. Hang Seng was down 3.15%, Kospi down 2.2%, Taiwan down 2%, Nikkei down 1.8% and Shanghai down 1.6%. SGX Nifty was down 1.6%.
Alert: US markets closed yesterday on account of Thanksgiving holiday and will close early today.
Alert: Singapore, Malaysia and Indonesia markets are shut today.
Dubai panic
-Dubai World with USD 60 billion liabilities will seek a six-month "standstill" on its debts with all lenders.
-Dubai accumulated USD 80 billion of debt by expanding in banking, real estate and transportation.
-Dubai's sovereign CDS surged 111bps to 429bps.
-S&P had placed the ratings of four Dubai-based banks on negative outlook due to their exposure to Dubai World.
-Dubai markets were closed yesterday, which will reopen on Monday.
By Varinder Bansal, Research Analyst at CNBC-TV18
