The US stockmarket, has like all major world markets been affected in recent trading sessions by the turmoil in the Far East. However after taking a dive early this week in the wake of the news of the closure of Yamaichi Securities, trading stabilised on Wednesday in the run-in to the holiday weekend. There will be an short trading session in New York today. There have also been some significant moves on the New York commodity markets. Gold prices fell below $300 an ounce on Wednesday for the first time since 1985 amid persistent reminders that the metal was losing its importance as a reserve currency.

Oil stumbled to the lowest levels in five months as Iraq's President Saddam Hussein allowed United Nations arms experts into his palaces, lifting a ban that had created tension with the West.

At the COMEX, gold for February delivery ended down £3.70 an ounce at £298.60.

Widespread selling by investment funds and producers in recent weeks, due in large part to gold's diminished role as a reserve currency, has weighed on gold prices, analysts said.

Bank of England Governor, Mr Eddie George, added to the bearish sentiment this week, saying he would be surprised if the planned European Central Bank, due to be set up in 1999, would hold much gold in its reserves.

Last month the Bundesbank confirmed it had joined the ranks of central banks lending some of their 35,000 tonnes of gold to the market, while many analysts believe a 200-tonne central bank gold sale in the third quarter has not yet been disclosed officially.