U.S. stock index futures rose on Monday as Abu Dhabi moved to bail out neighboring Dubai, winding down fears of a potential default that had rattled markets, and as Citigroup Inc reached a deal to pay back U.S. government funds.
The cost of insuring Dubai sovereign debt plummeted by more than 120 basis points on Monday after the emirate surprised markets with an announcement that it had obtained a $10 billion lifeline from neighbouring Abu Dhabi to help repay some of its debt. [ID:nLDE5BD0FV]
Stock index futures pointed to a higher opening on Wall Street on Monday, with futures for the S&P 500 up 0.59 percent, Dow Jones futures up 0.39 percent and Nasdaq 100 futures up 0.49 percent.
Asian stocks rebounded on Monday after Dubai said it had received $10 billion from Abu Dhabi to repay debt, which pushed down the yen and boosted the euro and emerging Asian currencies as risk appetite improved.
Abu Dhabi bailed out neighboring Dubai on Monday with $10 billion in surprise aid for debt-laden Dubai World, driving stock markets higher, but Dubai said creditors still needed to approve a standstill on outstanding debt.
Abu Dhabi stepped in to help fellow United Arab Emirates member Dubai on Monday with a $10 billion injection, of which $4.1 billion was allocated to troubled state-owned conglomerate Dubai World to pay immediate obligations, Dubai said on Monday.
Dubai said on Monday it had received $10 billion from fellow UAE member Abu Dhabi to help it repay $4.1 billion Islamic bond maturing on Monday.
To all extents and purposes, 2009 is over for investors and the coming week will be dominated by the issues of 2010.
Fed at Its Limits; Closing the Climate Deal Gap; D-Day for Dubai
Gulf Arab oil exporters will move closer to a unified currency when their rulers meet on Monday in Kuwait, which promised to seek the return of the United Arab Emirates and Oman to the monetary union plan.
Heavy rain pounded Dubai on Sunday adding to the gloom of the emirate's debt woes a day before the deadline of the $3.52 billion bond by state-owned developer Nakheel, with no word on how it will be handled.
World equities were generally weaker on Thursday, adding to five sessions of losses, although Europe rebounded after recent hits over some of the region's more vulnerable economies.
The S&P 500 and Nasdaq fell slightly on Wednesday on concerns about foreign debt and a weak outlook in the tech sector, but positive wholesale inventory data limited losses.
Dubai's Emaar Properties EMAR.DU on Wednesday said it would not merge with Dubai Holding's property units, a move analysts said protected the developer from Dubai Holdings' vulnerable debt position.
Fears that Dubai's debt problems are not limited to troubled state conglomerate Dubai World battered investor confidence in the world's top oil-exporting region and sent shares across the Gulf tumbling on Wednesday.
Concern over debts at Dubai's utility provider and losses at Nakheel, builder of the emirate's palm-shaped islands, hit markets on Wednesday, drowning out assurances by top officials that Gulf economies were sound.
Refinancing Drives Mortgage Activity; Modest Expansion for Economy; Chrysler Will Take Short Term Losses
The Canadian dollar climbed against the U.S. currency on Wednesday, boosted by firmer commodity prices and as investor risk appetite returned after recent losses.
Concern over debts at Dubai's utility provider and losses at Nakheel, builder of the emirate's palm-shaped islands, hit markets on Wednesday, drowning out assurances by top officials that Gulf economies were sound.
Stock index futures rose on Wednesday, signaling a recovery in Wall Street after the previous session's losses.
Concern over debts at Dubai's utility provider and losses at Nakheel, builder of the emirate's palm-shaped islands, hit markets on Wednesday, drowning out assurances by top officials that Gulf economies were sound.
Global equities slipped on Wednesday with Japan leading the falls on concerns over the pace of recovery, while crude oil prices recovered and the euro picked up from a one-month low on bargain hunting.
