THE FTSE 100 Index posted fresh losses today as world markets continued to fret over Dubai’s ability to finance its massive debt pile.
London’s Footsie tumbled 3% yesterday, while Asian markets were also under pressure overnight as Hong Kong’s Hang Seng fell more than 5% and Japan’s Nikkei was 3% lower. The US was closed for Thanksgiving yesterday but also looks set to tumble when Wall Street trading resumes later today.
The FTSE 100 Index opened another 1.5% lower, but recovered its poise to stand 0.5% or 27.1 points lower at 5167 at the end of the first hour of trading.
Markets panicked yesterday after Dubai World, the emirate’s main development engine, said it was asking creditors to delay paying back its 60 billion US dollar (£36.8 billion) debt.
Miners took the biggest hit as investors sought cover in less risky sectors.
Among the fallers, Kazakhmys dropped 33p to 1180p, Antofagasta slipped 18p to 872.5p and Randgold Resources eased 110p to 4915p.
Elsewhere, TalkTalk owner Carphone Warehouse rose 1.7p to 194p after it posted an 88% rise in pre-tax profits to £75 million and said it expected the strong showing to continue into the second half.