Dubai News Slams European Markets

Equity Futures: Dow -110.00. S&P 500 -14.70. Nasdaq -19.00. Japanese Nikkei -60.00. German Dax -12.00.

European Trade: The trend this week in global equity trading has been one day up, the next one down, and following this pattern, the overnight markets have traded in the red, with the regional Asian and European indices posting small declines. The same negative momentum has been seen in the U.S. futures market, which dropped more than 1% during Asian and the European trading hours.

European markets saw strong selling momentum near the opening bell, something that dragged the market down 2% in the first few hours of trade. Most of the selling came after Dubai World, the investment company run by the Dubai Government, said that it would have to delay its debt payments. At this moment, Dubai World has $59 billion in liabilities, and is an important stakeholder in a number of U.S. and European companies.

It is interesting that the major European indices dropped 2% from the opening bell, since the global markets had barely moved ahead of the European futures market, and ahead of the U.S. Thanksgiving Holiday. Later in the day, the U.S. cash market will be closed, while on Friday, the NYSE's Trading Floor will close at 1:00 p.m. EST.

S&P Technical View: TheLFB Member Charts

Four-Hour Chart Flows: Long. Price Points: 1082, and 1112. Looking for: A break of 1112 or 1082 to signal mid-term sentiment.

Momentum: S&P futures went into long mode on Nov. 13 and have easily held that trend, and that has allowed the tests of four-hour chart support to be bought. There is a tight sideways channel forming, and that is allowing the move from overbought to oversold and back again, to be completed over a five-day period.

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At the time of publication, Hague had no positions.

Marco Hague is one of the founders and principals of The London Forex Broadsheet (commonly known as TheLFB), a global forex trader portal with headquarters in the U.S. Hague began his career with the Bank of England dealing with foreign exchange control, and he has been trading for the last three decades. He has been involved with institutional risk asset ratio analysis and the implementation and maintenance of institutional trade desks globally.