The shockwaves from last week’s dramatic events in Dubai showed signs of receding on Monday as US stocks turned positive late in the day. The underlying mood remained cautious as fears of potential debt defaults remained uppermost in investors’ minds.
Markets welcomed the news that the United Arab Emirates’ central bank had established an emergency liquidity facility for local and foreign banks operating in Dubai. Dubai World, the state-owned company struggling with heavy liabilities, said it is in “constructive” talks with banks to restructure about $26bn of debt.
