CNBC report that Dubai World is tying to renegotiate $26 bln of its total of $59 bln in debts. Creditors have been asked to appoint a representative to a creditors committee. Dubai says the other $33 bln in debt is in good standing.
EUR/USD is firming on the news, as are stocks. The smaller total exposure may be helping increase risk appetites. Markets are very, very thin this afternoon, so we’d counsel against fading rallies as there is really no telling where markets can go in illiquid conditions.
