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Solid gains for European equity markets

Australian News.Net
Friday 27th November, 2009

European stock markets shrugged off debt concerns about Dubai Friday pushing all the major indices to a positive close.
European stock markets shrugged off debt concerns about Dubai Friday pushing all the major indices to a positive close.

A day earlier global markets fell sharply on news that Dubai was seeking a six months moratorium to meet repayment obligations on $59 billion of its total $80 billion debt.

The Dubai government said it was restructuring Dubai World, a government-owned entity responsible for the outstanding debt. Markets reacted negatively to the news but by Friday analsysts were saying the problem Dubai faced was not of a scope that merited the damage to markets that followed.

Putting it in perspevctive, $59 billion is not a number that would cause any sort of disruption to the functioning of global markets. The impact of Dubai's decision is more likely to be felt locally, and to some extent in other Gulf countries.

Investors meantime took advantage of lower prices Friday and bid prices higher. At the end of the trading session Friday London's FTSE 100 was up 0.99. The German DAX finished 1.27% higher. The Paris-based CAC 40 gained 1.15%.

The Swiss SMI added 0.85%, while the Oslo All Share index was up 1.63%.

Gulf markets have been closed since Wednesday for Eid.
 

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