UAE Markets in the Red on Euro Zone Woes

Local markets followed global bourses into the red this morning on continued fears about the fallout of the euro-zone sovereign debt crisis ahead today’s crucial vote of Greek bondholders.

A group working with private holders of Greek debt yesterday raised the specter that their refusal to accept a deal which will see them take around a 70 per cent haircut on their holdings could cause a trillion euro default in Spain and Italy.

The Dubai Financial General Market Index was down in early trading , falling 0.81 per cent to 1,675.53. The Abu Dhabi Securities Market General Index fell 1.15 per cent to 2,580.

As well as the global impact, the bourses look like they are embarking on a correction of recent rises.

Arabtec Holding, the Dubai property developer, dragged on the DFMGI following a major sell-off yesterday. Shares in the company were down 2.45 per cent, after closing down more than 7 per cent yesterday.

Oil pushed higher this morning ahead of US jobs data out today which is forecast to show improved employment among Americans, buoying hopes of a sustained recovery in the country that will help drive global growth.

The ADP report is expected to show about 203,000 more jobs were added in the US private industrial sector last month. Improved hiring figures suggest employers feel confident about the future.

Brent Crude futures for April were up 0.3 per cent this morning, edging 26 cents higher to US$122.36 a barrel.