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.
On the economic front, a statement released by the Ministry of Internal Affairs & Communications revealed that the unemployment rate in Japan stood at a seasonally adjusted 5.1% in October, down from 5.3% in the previous month. Economists had expected the unemployment rate to rise to 5.4%.
The Ministry also revealed that Japan's general consumer prices dropped 2.5% year-on-year in October following a 2.2% drop in prices in each of the previous three months. Core consumer prices, which exclude fresh food, dropped 2.2% in October from a year earlier, slower than a 2.3% drop in the previous month. Economists expected a 2.4% decline. This is the eighth consecutive month that consumer prices have fallen.
Separately, the Ministry of Economy, Trade & Industry revealed that retail sales in Japan dropped 0.9% year-on-year to 10.83 trillion yen in October, slower than the 1.3% decline in the preceding month. Economists had expected sales to drop 1.6%. This marks the fourteenth straight month in which retail sales have fallen on an annual basis.
Almost all the stocks ended in negative territory, mirroring the weak sentiment prevailing across the markets in the region.
Exporters declined on additional concerns about the strengthening of the local currency against the dollar. Automakers also ended sharply lower, while banking stocks were the major losers. Sumitomo Mitsui Financial declined 3.68%, Mitsubishi UFJ Financial shed 2.20%, Mizuho Financial lost 3.27% and Resona Holdings fell 2.67%.
In Australia, the benchmark S&P/ASX200 Index slumped 136.50 points, or 2.90% to close at 4,572, while the All-Ordinaries Index ended at 4,597, representing a loss of 130.40 points, or 2.76%.
Most Australian stocks ended in negative territory, impacted by the weak global sentiment on the Dubai financial crisis. Among the major banks, ANZ Bank declined 3.59%, Commonwealth Bank of Australia fell 3.40%, National Australia Bank lost 3.98% and Westpac Banking shed 3.83%. Investment banker Macquarie Group slumped 5.05%.
Metals and mining stocks also ended sharply lower. BHP Billiton fell 3.37%, Rio Tinto lost 2.97%, Fortescue Metals shed 3.14%, Gindalbie Metals declined 2.69% and Oz Minerals plunged 5.98%. Retail stocks, oil stocks and property stocks also ended in negative territory, mirroring the weakness in the global markets.
In Hong Kong, the Hang Seng Index plunged 1,075.91 points, or 4.84%, to 21,134, mirroring the gloomy picture across the other Asian markets on concerns about the financial crisis in Dubai and its cascading impact on banks and other institutions. All 42 components in the index ended in negative territory, with banks leading the decline.
South Korea's KOSPI Index slumped 75.02 points or 4.69% to 1,524, tracking the other markets in the region on the Dubai fears. All the components of the index ended in negative territory as traders preferred to switch to treasuries and sold off stocks.
Europe
Meanwhile, the major European markets have turned higher after moving sharply lower in early trading. The U.K.'s FTSE 100 Index is currently up 0.4 percent, while the French CAC 40 Index and the German DAX Index are both up 0.5 percent. On the economic front, Eurozone economic sentiment strengthened in November for the eighth month in a row, according to a report released by the European Commission.
The report showed that the index measuring economic sentiment for the 16-nation bloc rose to 88.8 in November from 86.1 in October. The index rose above the expected level of 88, but remained significantly below its long-term average of 100.
Stocks in Focus
Among individual stocks, shares of ING (ING) could be in focus after the financial services giant price its 7.5 billion euro rights issue. ING said it would issue 1.77 billion shares at 4.24 euros each.
Shares of Hudson Valley Holding (HUVL) are moving higher in pre-market trading after the company's board of directors declared a 10 percent common stock dividend for shareholders of record as of the close of business December 7, 2009.
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.