* Dubai World to ask creditors for debt standstill
* Holiday shopping season begins with "Black Friday"
* Volume seen low in shortened Friday session
* Futures down: S&P 30.3 pts, Dow 222, Nasdaq 50.25
* For up-to-the-minute market news, click []
(Adds quote, updates prices)
By Ryan Vlastelica
NEW YORK, Nov 27 (Reuters) - U.S. stock index futures were
sharply lower on Friday, a day after markets were shut for the
U.S. Thanksgiving holiday, as a possible debt default at a
Dubai state-owned conglomerate sparked fears of renewed global
financial turmoil.
Dubai, part of the oil-exporting United Arab Emirates,
shook the financial world Wednesday when it said it would ask
creditors of state-owned Dubai World and builder Nakheel for a
standstill agreement on billions of dollars in debt as a first
step towards restructuring. For details, see []
The U.S. dollar, considered a safe haven for investors,
rose 0.7 percent against a basket of currencies, while January
crude futures dropped 5.2 percent to $73.96 per barrel.
Overseas markets sank on the news. Hong Kong shares <>
dropped 4.8 percent, and Shanghai stocks <> fell 2.4
percent. []
U.S.-listed shares of banking and financial services group
HSBC Holding <HBC.N><HSBA.L> fell 7.3 percent to $57.52 in
premarket trading.
"Markets have been coasting along with the assumption that
the wall of worry is behind them. This moves the mindset
backwards," said Andre Bakhos, president of Princeton Financial
Group in North Brunswick, New Jersey.
"Investors everywhere are looking at this and fearing it
means we could slide back into an economic crisis."
S&P 500 futures <SPc1> sank 30.3 points and were below fair
value, a formula that evaluates pricing by taking into account
interest rates, dividends and time to expiration on the
contract. Dow Jones industrial average futures <DJc1> tumbled
222 points, while Nasdaq 100 futures <NDc1> slid 50.25 points.
Investors will closely be watching the results of "Black
Friday," the unofficial start of the crucial holiday shopping
period. Many retailers are offering steep discounts in order to
lure in customers with bargains.
Consumer spending accounting for about 70 percent of the
U.S. economy, and the strength of Friday's sales could suggest
how willing consumers are to spend in the season.
"Retailers are going to try and drive their topline with
discounting, but discounts weigh on margins and that will put
pressure on the bottom line," Bakhos said.
Trading volume will likely be low in Friday's shortened
session. No companies are scheduled to report quarterly results
and no major economic data is on tap.
In Wednesday's session, stocks rose in light volume as data
pointed to stabilization in the labor and housing markets,
areas that have fed concerns about a "double dip" recession.
(Editing by Jeffrey Benkoe)
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Reuters Messaging: ryan.vlastelica@reuters.com@reuters.net))
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