Today,the market is set to open in the red. Don’t expect too much of a bounce back soon as the Dubai debt issue could have a cascading impact as more clarity sets in. Stay light and reduce your exposure for the time being. Bargain hunting could wait till next week. It was the expiry of bullishness on every Street. That sinking feeling came yet again as debt problems in Dubai took its toll on financial markets world over. Safe-haven bonds rose and the rupee fell against the dollar.
US markets were closed for Thanksgiving and today is Black Friday, the day after Thanksgiving in the US. The day marks the beginning of the traditional Christmas shopping season. US investors would probably find discount sales during the truncated session. The debate of whether we are out of the woods or not will gain momentum again. In what appears to be the biggest sovereign default since Argentina in 2001, Dubai has sought debt standstill agreement at its Dubai World holding company or in other words, a six-month reprieve on debt payments.
