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US stocks dip amid Dubai, retail worries

Tue Dec 1 02:07:43 EST 2009
Mon Nov 30 15:07:43 UTC 2009

NEW YORK, Nov 30 AFP - US stocks drifted lower on Monday as Dubai debt crisis worries abated after the UAE central bank announced support for banks and traders weighed lacklustre Black Friday weekend holiday retail sales.

The Dow Jones Industrial Average fell 11.11 points (0.11 per cent) to 10,298.81 in opening deals in the first full trading session since Dubai announced on Wednesday it was seeking a six-month debt payment freeze for flagship conglomerate Dubai World.

The tech-heavy Nasdaq composite fell 6.95 points (0.33 per cent) to 2,131.49 and the broad-market Standard & Poor's 500 edged down 0.32 point (0.03 per cent) to 1,091.17.

Following the Thanksgiving holiday weekend, traders faced continuing jitters over the Dubai fallout that sent global markets tumbling last week.

"Fears that surfaced last week regarding the impact of Dubai World's debt restructuring request on lenders to the government holding company are being soothed by the announcement by the United Arab Emirates' (UAE) central bank support," Charles Schwab & Co analysts said in a note to investors.

The UAE central bank's announced on Sunday that it was providing additional liquidity to banks, including foreign banks operating in the UAE.

"The announcement is helping support early sentiment in the US, somewhat offsetting some mixed data from retailers after the key 'Black Friday' weekend," the Schwab analysts said.

The Dow had fallen 1.48 per cent Friday in an abbreviated session a day after the Thanksgiving holiday on concerns that Dubai's debt crisis could stall the global economic recovery from recession.

The Nasdaq slid 1.73 per cent and the S&P 500 retreated 1.72 per cent.