Market unease likely to persist for the moment

LAST week, US stocks fell on jitters over the Federal Reserve's likely moves. The unease is likely to persist, at least until midweek when the central bank makes its latest policy statement and Scotland votes on secession from the United Kingdom.

If Scotland declares its independence on Thursday, some analysts warn that the pound sterling may lose as much as 10 per cent of its value against the US dollar in the aftermath. After all, much of Britain's oil reserves lie in Scottish waters and some separatist politicians have pledged to seize them. The significance of Thursday's vote on the future of the UK is not merely historical or cultural, it is also financial.

The US dollar's gain against the British pound and the euro also reflects the relative strength of the US economic outlook. "The world economy is not in sync," said strategists at brokerage Morgan Stanley, in a research note. "Major regional economies are at different points along the growth cycle."