Monday, November 30, 2009

How the tiny Dubai has its sway on the global stock market?

The global stock market wake up to a rude shock when it was official that the state owned Dubai world and its real estate subsidiary Nakheel were in deep debt trap. The consequences of the Dubai fiasco had its share on the global stocks marked by the U.S. Standard and Poor 500 index fell by 1.7 per cent on November 27th and the Dow Jones real estate index too was down by 2.9 per cent.

When the Dubai sneezed, the Mumbai sensex caught cold by shedding about 400 points on the Friday, the November 27th. The official declaration about the Dubai debt trap revealed that it owed more than eighty billion dollars. The financial experts attributed the fiasco to non transparency in financial dealings which could possibly affect the entire global markets adversely.

The Dubai trap reminds us about the sub-prime crisis, started a year ago in the United States which laid the foundation for the subsequent stock market crash and global recession. The similarity in the sector that was targeted (real estate) shook the business confidence around the world. The US dollar started strengthening against the global currencies during the last week of November which will in turn exert great pressure against the equity markets globally.

The scenario before the crisis!

Before it was officially declared that the Dubai real estate is in red, the city was known for its conglomerate of real estate companies. It had the potential to become a world financial centre but for the bubble that had burst recently. It was considered as a status and symbol among the opulent and the super rich around the world to own a piece of real estate either as office or house in Dubai. Even those who can’t afford to have their share of cake sold their property elsewhere to have a root in Dubai to their own dismay.

The international rating agency, Standard and Poor’s, downgraded its ratings on many of the entities owed by the Dubai government due to the debt. Obviously it is seen that the world hasn’t learned the lesson it ought to, even after the sub-prime crisis and the Dubai real estate debt came as a real shock to those who had seen a silver lining in the recent economic recovery and upward movements in global equity markets. How the world will cope up with the recent Dubai debt and its effect on future stock movements across the world will be any one’s guess!

13 comments:

Unknown said...

Hi!

I just wanted to let you know that we have launched a new website: www.globalmoneyportal.com . We want to create an easier way for people to share and promote the great information that’s out there.

Your blog has been selected; we hope it will bring quality traffic to your interesting blog.

It would be great if you could link back to us as well to let people know about this new website :-)

Simple link:

URL: www.globalmoneyportal.com
Title: International Finance

or if you prefer you’ll find a series of more colorful widgets - stickers on this page as well

www.globalmoneyportal.com/badges

We look forward to sharing more information with you.

Let me know if you need anything.

Kind regards,

Elyse Cameron
http://www.globalmoneyportal.com

optiontips.in said...

Superb post,great tips,I have book marked this internet site so ideally I’ll see much more on this subject in the foreseeable future!
Stock tips

SRS Finance said...

I truly like to reading your post. Thank you so much for taking the time to share such a nice information. I'll definitely add this great post in my article section.
Stock Trading Tips

share tips said...
This comment has been removed by the author.
Unknown said...

Stock market indeed the best product to sell and need to improve its quality and this will improve it how to recollect it so can you provide the best process for it.

stock market trading

Curtis said...

Looking for some good seo firm to improve my sales and services.Tell me few good SEO service provider names which will help my business in business promotion?

seo company

Raahi said...

BSE SENSEX and NIFTY remained in a tight range bound session and ended almost flat with nominal red mark as traded over the global uncertainties. Mixed opening of European markets further confused the investors as they eyed the European Central Bank’s meeting ahead. The 30 share BSE benchmark fell 68 points led by the fall in 20 stocks and Nifty 50 benchmark down by 23 points to 5217.
Stock Tips

Unknown said...

Mansukh investment and trading solutions company is leading share market investment company.Mansukh provides all types of online stock trading includes best investment tips to their customers.Mansukh share trading have best commodity trading for investors, equity shares, stock shares and many types of investments in share markets.

Sonal Jain said...

The BSE Sensex Index closed 294 points higher at 34,300, while the Nifty50 closed 85 points higher at 10,540.
Stock Advisory Company

Unknown said...

Great content you have posted. get this also
Expert Investment Tips

Kyle Walker said...

WINNING303 - JUDI BOLA ONLINE | CASINO ONLINE | SLOT ONLINE | POKER ONLINE TERPERCAYA

BANDAR BOLA ONLINE

BANDAR TOGEL ONLINE

BANDAR SABUNG AYAM ONLINE

BANDAR TOGEL ONLINE

BANDAR BOLA ONLINE TERPERCAYA

* KUNJUNGI SITUS KAMI DI *

www.winning303.com


*NB : MENANG BERAPAPUN, PASTI KAMI BAYAR !!! *

* Melayani LiveChat 7 x 24 Jam Nonstop :
- WA : +6281717177303
- BBM : WINNING303
- LINE : WINNING303*



DAFTAR SEKARANG


WINNING303 - JUDI BOLA ONLINE | CASINO ONLINE | SLOT ONLINE | POKER ONLINE TERPERCAYA

Bakar Ayam Marketing said...

Judi Sabung Ayam S128

Agen Sabung Ayam S128

Agen Sbobet

PokerMan said...

Bonus rollingan bisa Anda dapatkan dari TO Anda selama 1 minggu, semakin besar TO Anda bermain permainan yang di sediakan disini, maka semakin besar juga bonus yang akan kamu dapatkan setiap minggunya.
Pelayanan yang telah disediakan di CodPoker juga super cepat dan akan membantu Anda selama 24jam nonstop oleh Agen Poker Online.

Judi Poker Online
Situs Poker Online
Agen Poker Online