European markets fall almost 1% as Dubai debt fears continue

Joshua Raymond, Market Strategist at City Index commented: "European markets continued to fall on Monday, losing over 1% as investors fretted that the Dubai debt concerns could stunt the global economies return to growth.

Nothing has significantly changed over the weekend and the problems are not going to go away until some transparency can be gained as to the larger implications of the delay in debt payments by Dubai World.

We saw many investors come in to pick up the badly beaten stocks on Friday from their lows and with much still hanging in the balance on the Dubai situation, investors have already looked to cash in their profits as soon as the markets opened today.

We have some major economic data to come this week and if we get some really positive jobless figures out on Friday, the whole Dubai situation may be put to one side quickly but right now, it's the only story in the headlights for investors to focus on.

That said, we have already started to see buyers come back into the markets in and around the 5200 level, which is helping to put a floor on today's losses somewhat.

The banks have been the real drag on the Indices this morning with both Lloyds and RBS leading the fallers. The banks are still suffering from the Dubai fallout and Lloyds share prices have been pressurized further by S&P Equity Research cutting their price target on the stock to 60p.

Thomas Cook

Thomas Cook's earnings has helped to lift the travel leisure sector today after announcing full year profits ahead of market expectations. The travel group is confident of meeting its 2010 expectations and the news has been well received by investors with Thomas Cook shares rallying 1.7% and topping the FTSE 100 winners list in the morning session."