Europe's main stock markets dropped by more than 1 per cent in early trading on Friday, caused by worries about the threat of a debt default from Dubai.
London's benchmark FTSE 100 index fell 1.06 per cent to 5,152.86 points while Frankfurt's DAX 30 shed 1.32 per cent to 5,540.34 points. Dow component Exxon Mobil (NYSE: XOM) shares fell 1.9 percent to $74.99 before the bell, as did United States Oil Fund LP (ETF) (NYSE: USO).
The markets lost confidence from the news that Gulf Emirate's public investment company, carrying $59 billion of liabilities, will delay repayment on much of its debt.
Dubai is one of seven city states that make up the United Arab Emirates. On Wednesday, it announced that it intends to request a "standstill" for at least six months on the maturing debt of Dubai World, its largest and most-indebted state-run holding.
Standard and Poor's (S&P) estimated last month that Dubai state-related companies are due to repay some 50 billion dollars in debt over the next three years, which represent 70 per cent of the emirate's gross domestic product.
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