Frederic Ruffy submits:

Sentiment

The major averages fell Friday morning after worries about Dubai’s credit problems sent global equity markets lower for a second day. Global equity markets sold off Thursday, while the US was closed for holiday, after Dubai World asked creditors asked for a six-month stay to repay million in debt. Fear that problems in the credit markets might begin to resurface, and spread, triggered a notable uptick in risk aversion across the financial markets.

Equity markets in Asia suffered steep losses for a second day. Japan’s Nikkei lost 3.2 percent and Hong Kong’s Hang Seng tumbled 4.8 percent. While benchmarks in Europe moved modestly higher Friday after steep losses sustained Thursday, crude oil and gold prices plunged before the start of trading in New York.

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