In Europe the DJ Stoxx 600 has dropped from 3

The announcement of a virtual of Dubai has been the effect of a small explosion on the markets. On Wednesday, Dubai World, one of the most important holdings of the Emirate, has requested a moratorium of six months on its debt, a few hours after the State had indicated having lifted 5 billion with two banks of Abu Dhabi. CDS (credit default swap") of Dubai jumped more than 120 points in a day, the sixth largest of the States considered the less solvent by the market. Yesterday, he continued to rise significantly above the bar of 500 points. The CDS reflect the cost of insurance against the risk of a debt default. The shock wave spread across the market. The other Gulf States, but also some Asian countries, saw their climb CDS. Dubai wake up bad memories. A year ago, the Iceland, victim of the financial crisis, to approach bankruptcy, while in the early 2000s, the Argentina and the Indonesia is declared bankrupt. "Dubai events occur at a time where the uncertainties are growing on the market of debt, some countries such as the Greece or, to a lesser extent, the Ireland," noted Jean-François Robin, at Natixis. What exacerbated the fears and to make the countries concerned risk premiums. Yesterday, the gap of 10 years between the Greece and the German Bund rate jumped to 201 basis points. Investors are likely to be more discriminating against sovereign debt.

On the stock markets, the increase of the risk aversion was sensitive. Wall Street closed because of Thanksgiving, the volumes of activity were reduced, which tends to amplify the movement. In Europe, the DJ Stoxx 600 has dropped from 3.27, to 239,85 points, reverting with the level of the beginning of the month. The index had not conceded as much land in a session since April. The CAC 40, the Futsee and the DAX all dropped more than 3, heavily penalized by financial values, victims of concerns about the exposure of banks in the United Arab Emirates.

In the expectation of Wall Street

In Asia, the shaking was also important. The Shanghai index dropped 3.62. The spectacular recovery of the stock markets since the beginning of the year and the absence of additional upside catalysts also argued for consolidation. Dubai has served as a trigger. Operators rushed on assets considered as defensive. The major bond markets benefited. The German 10-year rate is relaxed to 10 basis points to 3.16, and the French Decade gave 7 basis points to 3.43. The two rates were not as low since mid-October. On the foreign exchange market, the dollar has fully played its part of refuge currency, after touching the previous low of the year. The euro thus ironing under 1.50 dollar, ending the day down 0.59, to 1,4991 dollar. The currencies to strong performance as the New Zealand or Australian dollar and emerging currency, Hungarian forint in mind, have plunged.

Risk strategies, encouraged by a very accommodative monetary policy in the United States and liquidity abundant in the world, were wrong. The credit market was not spared by the shaking. The Itraxx, which measures the perception of the risk of default relating to poorly rated companies, stretched more than 23 basis points. The return of American stakeholders will be crucial in determining the extent of the panic. Today, the stock exchange is open for a demi-séance.