Leading Wall Street shares fell in early trading amid increasing threats from terror attacks around the world. By mid-morning, the Dow Jones was down 77.48 points to 9,691.2 and the Nasdaq was down 24.37 points to 1,905.89. Wall Street mirrored equity markets worldwide amid reports of an increased threat from terrorist attacks. A direct threat of an attack on Tokyo from terror group al-Qaeda sent shares on the Nikkei index to below the 10,000. US investors took the opportunity to consolidate gains made in the recent rally. News that the New York Fed's Empire State Manufacturing Survey hit a record high where economists had predicted a fall failed to boost the market.
In corporate news, two of the US' largest insurers - The St Paul Companies and Travelers Property Casualty - announced that they are to merge in a "stock-for-stock" deal valued at USD16bn. The combined company, to be known as The St Paul Travelers Companies, will have total assets of USD107bn, total capital of USD26bn and net written premiums of USD20bn. Shares in St Pauls jumped by 5.25pc while Traveler's rose by 1.68pc. //www.fxcentre.com