Markets Report
European stocks were treading water and US stocks also set to open flat. The seemingly imminent end to hostilities in Georgia aided sentiment somewhat, after Russian president Medvedev ordered a ceasefire, but more bad news on banks — UBS announced another significant writedown and plans to separate its activities — unnerved investors. ECB rate-setter Axel Weber said financial turmoil will last far into 2009.
UK data were gloomy on the economy, with slowdown signals from RICS and BRC surveys, and inflationary signals coming from a jump in CPI to 4.4% — higher than expected and more than double the official 2% target.
The FTSE managed to stay in positive territory (up 0.2%). The Dax was off a fraction and the CAC up 0.3%. US stock futures are flat.
Oil remained weak after Russia halted its military operations. WTI Crude was down 82 cents at 113.67 and Brent down 87 at 111.80.
Gold was down, albeit recovering a touch from overnight lows, trading at $814. The day low was $801.
Fixed-income issues found a bid. The yield on the 10yr Bund was down 2bps at 4.24%, the yield on the 10yr Gilt down 5bps at 4.65% and the 10yr T-note yielded 3.98%, down 2bps.