Wednesday, December 9, 2009

Greece and Dubai Nervousness Continues

It's pretty ugly overseas.

The Athens stock market fell another 2.2 per cent and Greek government bonds fell following Fitch’s downgrade of Greece’s sovereign debt on Tuesday.

The yield spread between German Bunds and Greek 10-year debt widened to more that 250 basis points at one stage, while an index that tracks the cost of insuring Greek debt from default – its five-year credit default swap – jumped from 209 basis points to 227 basis points, according to Reuters.

Meanwhile, the Dubai General equity index lost another 6.4 per cent and its five-year CDS rose from 542 basis points to 592 basis points. The Abu Dhabi stock market fell 2.8 per cent.

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