Dubaija Vu All Over Again
The FTSE chart is identical to what happened over Thanksgiving (absent the 5 hours of downtime of course): FTSE 100 down 1.6%, FTSE Eurofirst 300 down 1.7%, And as if having all its bankers depart and its CT office look like a ghost town, RBS is now getting freshly clobbered. In US futures, computers with massive REIT positions are short circuiting.
The reason: that long-buried (in the sand) and presumably "taken care of" problem of Dubai:
Dubai shares tumbled to the lowest level in almost five months, led by Emaar Properties PJSC and Emirates NBD PJSC, on concern that Dubai World is struggling to restructure its debt.
Emaar, the United Arab Emirates’ biggest real-estate developer, slumped 7.6 percent and Emirates NBD, the region’s largest publicly traded bank by assets, retreated to the lowest since Sept. 3. The DFM General Index plunged 4.7 percent, the biggest fluctuation among global benchmarks tracked by Bloomberg, to 1,663.35 at 10:41 a.m. in the emirate. The measure, which is heading for the lowest close since July 13, has tumbled 20 percent since Dubai said on Nov. 25 that it was seeking a “standstill” agreement on Dubai World’s debt.
The question on everyone's mind - will today be the (dollar short unwind) day?