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Euro hits 5-month peak, rouble at 7-month high

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S&P 500 flirts with confirming market correction

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Nikkei steadies after slide to 6-month trough

By Tom Westbrook

SINGAPORE, March 12 (Reuters) - The euro was riding at

five-month highs on Wednesday on Ukraine's readiness to accept a

month-long ceasefire, while stocks whipsawed on back-and-forth

U.S. tariff plans and concern about a U.S. economic slowdown.

European equity futures jumped 0.8% and FTSE

futures rose 0.3% after the U.S. said it would restore

military aid and intelligence sharing to Ukraine after Kyiv said

it would accept a U.S. ceasefire proposal.

Russia is yet to respond.

The euro hit its highest since October in New York

trade at $1.0947 and was steady at $1.0913 in the Asia session.

Russia's rouble rose to a seven-month high overnight.

MSCI's broadest index of Asia-Pacific shares outside Japan

was up 0.2% with markets in Hong Kong and

China broadly steady and Japan's Nikkei holding

its ground after slumping to a near six-month low a day earlier.

On Wall Street overnight the S&P 500 flirted with

notching a 10% fall from February's record closing high, and

finished a volatile session about 0.8% lower.

President Donald Trump threatened then backed down from a

doubling of steel and aluminium tariffs on Canada to 50%, after

Ontario suspended plans for a surcharge on exported electricity.

The dollar has sunk, Treasuries have rallied and lately

stocks have suffered their heaviest selling in months as traders

worry tariffs and policy uncertainty will hurt U.S. growth.

"He's clearly trying to rebalance the economy back in favour

of America," said Catriona Burns, lead portfolio manager of a

global fund at Wilson Asset Management in Australia.

"In this interim bit at the start, where he's going hard,

it's a very dynamic environment to be operating in," she said.

"The uncertainty that the tariffs and the back-and-forth on

them is creating is hindering decision making ... so the effect

that has in terms of a short-term pocket for the U.S. and an

impact on growth there will be really interesting."

Travel stocks took a beating after Delta Air Lines ( DAL )

cut its profit forecast in half and rivals United and

American Airlines ( AAL ) warned of deteriorating results,

falling government bookings and uncertainty weighing on demand.

Investors nervous about the economy also punished downbeat

financial results from retailers, with Dick's Sporting Goods

stock diving 5.7% on a dour outlook and Kohl's Corp

shares plummeting 24% after reporting a drop in sales.

Steel and aluminium tariffs take effect later in the day.

U.S. inflation data for February is also due, though it is

likely to be too early to show much of a tariff hit.

A central bank meeting in Canada will be closely watched to

see what monetary policymakers on the front line of Trump's

trade war are thinking. A seventh consecutive rate cut -- seen

as only an even chance two weeks ago -- is priced in to the

market.

The Canadian dollar hit a one-week low overnight

before recovering to C$1.443 per dollar. U.S. equity futures

were broadly steady.

The yen inched down from a five-month high to

trade around 148 per dollar. The risk-sensitive Australian

dollar was pinned just below 63 U.S. cents and Brent

crude futures were held just under $70 a barrel.

(Editing by Shri Navaratnam)