European stock markets were little changed in early trade as traders took a cautious stance as the first anniversary of the September 11th attacks on the US dawned, dealers said.
Activity is very sparse reflecting a general reluctance to take positions as the world goes on standby for the possibility of terrorist attacks.
The tension is palpable with the US authorities shutting down its embassies in several South East Asian countries and the US Navy warning shipping - especially oil tankers - in the Gulf to be wary, dealers added.
Data flow has also slowed to a trickle with the UK labour market report the only figures to be released today.
A soft performance on European equities this morning have been mildly positive for government bonds although neither equities nor bonds are showing any clear direction against the current backdrop.
Looming ahead are several key events. President George Bush will address the United Nations tomorrow while US Federal Reserve chairman Alan Greenspan testifies to Congress.
Meanwhile, the possibility of an imminent attack of Iraq continues to preoccupy markets as US thrust for action continues.
Gilts were also little changed with the market unperturbed by British prime minister Mr Tony Blair's warm endorsement for the principle of UK entry into the euro.
Mr Blair cited currency volatility as a key concern for manufacturers and one of the reasons why, in principle the government is in favour of joining.