NEW YORK. World stocks rose yesterday as shock waves from Dubai’s debt delay proposal died down. The U.S. dollar fell against the euro after United Arab Emirates promised liquidity, easing worries about a default.
Dubai’s proposed delay last week in repaying billions in debts of its state-owned conglomerate Dubai World roiled global markets, raising fears that the emirate which funded a spectacular building boom on a mountain of debt could default.
The UAE central bank’s decision on Sunday to provide emergency liquidity to its banks helped ease some concerns and prompted a bounce back in emerging markets across Asia.