This morning shares appear to be down this morning over confusion of the Abu Dhabi bailout.

Five days ago, the Gulf state of Dubai initiated a panic around the world.  It was news that the state owned company Dubai World wanted a 6 month break from its debt repayments.  This raised the spectre of a meltdown in the luxury land of the rich, possibly leading to a panic that derailed the global econmic recovery.

Trading has been suspended since last week for the Eid al-Adha holiday.

A good sign that the world markets are feeling more optimistic is that the US dollar has lost ground against many other currencies, which has helped push the oil price up.  Despite the state of the US economy, investors still seek the safety of the greenback at times of crisis.

The Japanese prime minister Yukio Hatoyama has been talking about the situation also.  He has been talking to reporters in Tokyo that he “remains cautious over Dubai credit worries”.

Royal Bank of Scotland shares are down over 4% this morning at 33p, this has helped push the FTSE 100 down by 40 points to 5204.  It was annouced on Friday that RBS has organised more loans to Dubai World than any other bank.  Its still not clear how much of that debt remains on RBS’s books.  This will no doubt cause a worry for RBS investors this morning as has been relfected in their share price.