Markets fall after Dubai seeks break in repayment

IRISH and European stocks experienced their biggest fall in seven months yesterday as fears grew that failure by Dubai to repay $60 billion (€40bn) in debt could trigger the biggest sovereign default since Argentina in 2001.

Markets were rocked as Dubai World sought a standstill agreement from creditors for the massive amounts owed.

London Stock Exchange Group, whose largest shareholder is Borse Dubai, suffered its biggest fall since April, Bloomberg said.