Dubai World Debt Rocks Markets

Dubai world debt rocked the world markets that were usually relatively quiet over a holiday. Not so today, as the rest of the world digested the stunning news from Dubai that the government’s flagship investment company was in financial trouble.

World Market Updates

FTSE 100 index of leading British shares closing down 170.68 points or 3.2%

Germany’s DAX fell 188.85 points, or 3.2%

CAC-40 in France was 129.93 points, or 3.4%

Sentiment in stocks was dented by the news that Dubai World, which is thought to have debts totaling around $60 billion, has asked creditors if it can postpone its forthcoming payments until May. That stoked fears of a potential default and contagion around the global financial system, particularly in banks and emerging markets. Take a look at the debt structure as compared to other countries.