The Bank of England is seen in the City of London. Sterling rallied to $1.5811 yesterday on stronger-than-expected British unemployment data that gave rise to expectations that the BoE would be forced to raise record-low interest rates earlier than thought.

AFP/London

Europe’s leading stock markets were broadly steady yesterday after the previous day’s strong gains, with traders cautious despite a possible deal aimed at preventing a US-led military attack on Syria.
London’s benchmark FTSE 100 index ended the day up 0.07% at 6,588.43 points, while the CAC 40 in Paris gained just 0.06% to 4,119.11 points.
But Frankfurt’s DAX 30 firmed a more buoyant 0.58% to 8,495.73 points.
The index won the extra support from news that Germany paid its highest interest rate in almost two years at a bond auction yesterday, as economic prospects in the eurozone brighten and the country’s safe-haven status dwindles.
The interest rate for the 10-year Bund came in at 2.06%, the highest for such an operation since October 2011, the Bundesbank said.
Despite a pick-up in the eurozone and positive British unemployment data, “there remains a lot of uncertainty in the financial markets at the moment and as we know, the markets hate uncertainty”, said analyst Craig Erlam at Alpari traders.
“This is not just centred around the conflict in Syria, opinions are still split on whether the Fed will scale back its asset purchases when it meets next week,” he added.
Russia said yesterday it had offered the US a plan to put Syria’s chemical weapons under international control, further raising hopes on trading floors of a diplomatic solution to the crisis.
President Barack Obama on Tuesday asked Congress to delay voting on US military action.
In a live address to the nation from the White House, Obama said delaying a decision on military intervention in Syria was necessary to give a chance to Russia’s plan to neutralise its ally’s chemical weapons.
European equities had rebounded strongly on Tuesday as investors welcomed bright Chinese economic data and the receding threat of imminent military action against Syria.
Frankfurt and Paris indices both jumped by about 2.0% in value on Tuesday.
Yesterday, the European single currency rose to $1.3307 from $1.3267 late in New York overnight. The dollar dipped to ¥100.08 from ¥100.27.
Sterling rallied to $1.5811 on the stronger-than-expected British unemployment data that gave rise to expectations that the Bank of England would be forced to raise record-low interest rates earlier than thought.
The price of gold advanced to $1,363.75 an ounce on the London Bullion Market, from $1,358.25 Tuesday.
On the corporate front, shares in France’s Vivendi fell 1.12% to €16.70 on talk of a corporate shake-up, which was confirmed just after the close with the firm announcing a plan to split its Internet and mobile phone unit SFR from media operations which include Universal Music.
In Germany, power utility RWE rallied 6.57% to €25.06 and EON 4.79% to €13.45.
Deutsche Bank rose 0.98% to €35.12 on news it looks set to retain its current management team of two co-chief executives for two years longer than expected
US stocks opened mixed yesterday, with Apple’s disappointing iPhones launch dragging down the Nasdaq.
In midday trading, the Dow Jones Industrial Average was up 0.60% at 15,281.69 points.
The broad-market S&P 500 index edged up 0.10% to 1,685.73, while the tech-rich Nasdaq fell 0.19% to 3,722.07 points.
Apple shares were under heavy selling pressure, down 5.62%, a day after unveiling two new iPhones and dashing expectations that a media event in Beijing would reveal a deal with China Mobile, the country’s biggest carrier.