Stocks stabilize following last week's Dubai debacle
Limited exposure in the U.S. to the troubled Dubai World investment fund helped stocks stabilize in early trading this morning, following a Friday plunge, as traders worried they could be looking at another Lehman Bros. situation.
In the first 30 minutes of trading, the Dow and the the broader S&P 500 are just above water, while the tech-heavy Nasdaq is down one-quarter of 1 percent.
Dubai World, the investment arm of Dubai, will have much more impact on European banks than on banks in the U.S., analysis over the long holiday weekend has showed. European stocks stayed low Monday while the Asian markets rebounded. The United Arab Emirates, home of Dubai, said it will make more funding available to banks in the country.
The news that touched off the sell-off came late last week, when Dubai World asked to defer $60 billion in debt payments for six months.
However, Dubai's government tanked stocks on the Dubai exchange this morning when a top Dubai financial official said Dubai World's debt is not guaranteed by the emirate, sending stocks on the exchange down some 7 percent on their first day since the news broke last week.
-- Frank Ahrens
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November 30, 2009; 10:25 AM ET
Categories: The Ticker | Tags: Dow Jones, nasdaq, s&p 500
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