Mitul Kotecha submits:

Dubai’s bolt out of the blue is hitting markets globally, with the aftershock made worse by the thin liquidity conditions in the wake of the US Thanksgiving holiday and Eid holidays in the Middle East. Estimates of exposure to Dubai companies vary considerably, with European banks estimated to have around billion in exposure though what part of this is at risk is another question.

The lack of information surrounding the Dubai announcement made matters worse. The aftermath is likely to continue to be felt over the short term, with further selling of risk assets likely. Indeed, there is still a lot of uncertainty surrounding international exposure to Dubai or what risk there is to this exposure and until there is further clarity stocks look likely to face another drubbing.

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