A relief that Fri was holiday...

Dubai debt pblm sent shock waves to Fri's Asian trading...HS and Korea tumbled almost 5%. Generally mkts and commodities were dw from 2% to 5% on Fri.

However, fkli.fbm are likely to survive better...as DJ only dipped 1.5% while Europe actually closed 1% higher on Fri. These are likely to soothe Mon's sentiment. Still, the fkli.fbm is expected to take a 5-10 points drop first on Mon. Instead, technical weakness could exert more pressure.

The mkt is pricing in a Dubai's default, the first goverment-link bond default since Argentina in 2001. It will increase mkt volatility in the coming days on financial stocks but unlikely to reverse mkt direction in the long run.

I dont think UAE will "allow" it to go under. ..plus US60b is "small" compared to the cost of credit crisis. ..plus UAE is oil rich.. repayment should not be a plbm in the long run.