Shares dive 2pc on Dubai debt concerns

THE share market opened in the red today on large falls in world markets over concerns that Dubai might default on billions of dollars of loans. Overnight Fitch Ratings agency downgraded two of Dubai's top public firms in the wake of the emirate's shock call to suspend the debt of a key state conglomerate.

At 10.15am AEDT, the benchmark S&P/ASX200 index was down 95.9 points, or 2.04 per cent, at 4612.7, while the broader All Ordinaries had lost 93.7 points, or 1.98 per cent, to 4633.9.

Resource stocks led the losses with the mining giants both down.

BHP Billiton was down $1.32, or 3.16 per cent, at $40.48, and Rio Tinto fell $2.28, or 3.23 per cent, to $68.37.

Gold stocks were down with Lihir six cents lower, or by 1.63 per cent lower, at $3.61, Newcrest was down 43 cents, or 1.13 per cent, at $37.57 and Newmont was flat at $5.89

At 10.21am AEDT, the spot price of gold in Sydney was $US1,187.10 per fine ounce, down $US6.05 from yesterday's closing price of $US1,193.15.

Wall Street was closed overnight for Thanksgiving. Markets reopen on Friday night.

Gas prices will continue to rise before leveling offBank hammered 3pc on Dubai worries