(RTTNews) - The major U.S. index futures are pointing to a sharply lower opening on Friday, as traders react to news of a financial crisis in Dubai. The downward momentum comes after Dubai World, the main investment arm of Dubai, asked to postpone payment on some of its $60 billion in debt. Worries about a default by the city-state have raised significant concerns about the impact on banks.

The news has contributed to substantial weakness in overseas markets that appears poised to carry over into the U.S. markets. Light volume on Wall Street amid a holiday-shortened session could contribute to increased volatility.

The major U.S. averages, which showed some indecision in early trading on Wednesday, advanced strongly shortly after the open, reaching their intra-day highs in early afternoon trading. Thereafter, they pared some of their gains and traded with modest gains in the afternoon.

The Dow Industrials ended the session up 30.69 points or 0.29% at 10,464 and the S&P 500 Index rose 4.98 points or 0.45% to end at 1,111, while the Nasdaq Composite Index advanced 6.87 points or 0.32% to 2,176.

Twenty of the thirty Dow components ended the session higher, with Boeing (BA), Caterpillar (CAT), DuPont (DD), Disney (DIS), Home Depot (HD) and Pfizer (PFE) posting strong gains. On the other hand, Kraft Foods (KFT) and Bank of America (BAC) declined by over 1% each.

Among the sector indexes, Dow Jones Utility Average advanced 1%, the Dow Jones U.S. Basic Materials Average climbed 1.72% and the NYSE Arca Airline Index gained 1.16%. The NYSE Arca Oil Index and the Philadelphia Oil Service Index moved up about 1% each, while the NYSE Arca Gold Bugs Index rose 2.80%.
Currency, Commodity Futures

Crude oil futures are trading down $3.14 at $74.82 a barrel after rising $1.94 to $77.96 a barrel on Wednesday. Gold futures, which ended the previous session up $21.20 at $1,188.60, are currently moving down $21 to $1,167.60.

Among currencies, the U.S. dollar is trading at 86.61 yen, while the greenback is currently valued at $1.4922 versus the euro compared to yesterday's $1.5019.

Asia

Stocks markets across the Asia-Pacific region ended sharply lower on Friday on concerns about a financial crisis in Dubai. Investors across the world dumped high-risk stock investments and sought asylum in safe-haven government bonds.

In Japan, the benchmark Nikkei 225 Index slumped 301.72 points, or 3.22%, to 9,082 while the broader Topix index of all First Section issues declined 18.55 points, or 2.24%, to 811.

 1   2   3   Next Page