World Markets Plunging Dow Futures Down 200 Dollar UP Gold Down
U.S. Dollar acting as only safe haven. U.S. Treasuries are rallying about the only two things going up as is often the case in crisis the U.S. dollar and debt is the only safe haven.
In addition to Thursday plunge in most markets (only U.S. closed) Friday most of Asia and Europe is tanking down over 3% and still falling in European markets still open. Dow Futures are down 200. Gold is dropping.
Risky currencies also sold off as Dubai World, the city state's largest corporate entity, Wednesday asked creditors for a six-month standstill on debt repayments of $59 billion.
Patrick Bennett, Asia rates strategist at Societe Generale said: "Fallout from Dubai World seeking a debt moratorium has been broad. It is not the amount involved ($59 billion) but potential contagion that will drive markets."
Australian and New Zealand dollars hit in particular along with the euro. "The dollar's rebound hurt commodity prices such as gold and crude oil, leading to a pullback in shares of resource producers." per MarketWatch at 12:04am EST
But some analysts suggested that the selloff in equities, risk currencies and commodities was probably a little overdone. "Everyone has gone into panic mode but this is Dubai -- it's not going to send the world into a tailspin," said Patersons Senior Client Advisor Chris Blair, in Sydney. "