The Ibex 35 fell 2.58% to fears from Dubai
| Date: November 26, 2009 | Source: AlertNet |
| Category: Bags and Markets | |
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Loading ... The alarm rang in the equity markets before the financial crisis in Dubai. Banks, builders and other companies with interests in the Arab emirate fell sharply and led to declines in European rates of 3%. In Spain, the Dow ended up losing the 11,700 points, with only positive OHL. The euro extended losses after put an S & P rating of four banks of Dubai negative outlook. Oil fell 2%.
About 40,000 million dollars is the figure that puts Credit Suisse exposure of European banks to Dubai. The emirate has called for a moratorium on the debt of Dubai World and its real estate division Nakheel, the most representative companies of the "boom" real estate in the country. The shock created this news sparked the flight of money into the quality and banks, builders and other companies with interests in the Middle East were grass sales.
"The collective fear is not good. But on the other hand, it seems that what is happening right now in Dubai is just a good excuse for markets to correct some of the recent rises. An important question, no doubt. But determining the recovery of markets (and therefore the economy). What is also certain is that the current crisis is also a financial crisis. A test of the strength of the recovery of confidence of economic agents in the case of Dubai, "said Citi strategist, Martinez Campuzano.
Also, the dollar extended gains just know that the rating agency S & P placed on negative watch four banks of Dubai. At the end of Madrid, the euro was down 0.97%, which lost 1.50 level against the dollar. While this was happening, it became known that the Bank of Japan is not willing, at least for the moment to intervene in the currency market to curb the escalation of the yen, which is at maximum 14 years.
The Dow, which lost 2.58% to close at 11,657 points, its biggest drop in three months, only escaped OHL sales. The value rose 1.25% after shareholders approved the capital increase by 16.6 million shares. ArcelorMittal recorded the largest decrease (-5.46%), followed by Ferrovial (-5.18%) by Cintra (-4.81%), Iberia (-4.77%) and Sacyr-Vallehermoso (-4.11%). The heavyweights also succumbed Telefonica subtracted 1.82%, 3.26% down Santander, BBVA 3.5% was allowed, dismissed Repsol and Iberdrola 2.51%, 1.85%.
In the continuum, Montebalito, Sol Melia and Vocento fell more than 7%, while Prisa fell 6.47% after selling 21% Telefonica Digital +. The money found refuge in a handful of values to said Nicolas Correa, an improvement of 9.88% and Mecalux, who recovered just 7.59% when it announced it is considering delisting at a price below 15 euros per share.
In Europe, the Eurostoxx sank 3.36% with all negative values, except Bayer, who repeated price. The loss of value of Aegon and ING exceeded 7%, while Saint Gobain, Volkswagen and Deutsche Bank were down over 6%.
Brent cut 1.61% to $ 77.18 per barrel and the West Texas traded at $ 76.26 after falling 2.28%.
November 26th, 2009 at 20:32
[...] In Spain, the Dow ended up losing the 11,700 points, with only positive OHL. The euro extended losses after put an S & P rating of four banks of Dubai negative outlook. Oil fell 2%. See the original post ... here: The Ibex 35 fell 2.58% to fears from Dubai [...]