Dubai default fears scare world markets
Concerns about Dubai's ability to repay some of its debts have sent share markets around the world reeling.
Dubai is seeking to delay the repayment of billions of dollars in debt held by the partly government-run company Dubai World.
Dubai World is a conglomerate which owns one of the United Arab Emirates' biggest property developers.
The company is thought to have debts worth about $US60 billion and wants a six-month suspension on the repayments until May next year.
A market analyst with CommSec, Juliana Roadley, says 40 per cent of the money owed is funded by banks in the euro zone.
"That's why we saw such a big sell off on European markets on this story," she said.
The DAX in Germany lost 189 points, or 3.25 per cent, to close at 5,614.
France's CAC shed 130 points, or 3.4 per cent, to 3,679.
In Britain, London's FTSE 100 slumped 171 points, or 3.18 per cent, to close at 5,194.
Markets throughout central and South America also lost value overnight.
There was no market trading in the United States because of the Thanksgiving holiday.