Some of the take-over froth behind Monday's 2.4 per cent surge in the FTSE 100 index was blown away yesterday as the absence of any more hard bid news prompted persistent flurries of profit-taking, most of it in the banking sector. However, the market had other worries, notably next week's three crucial interest rate decisions, in Britain, the US and the euro zone. Dealers said sentiment in London was undermined by book-squaring as the end of the third quarter approached. Adding to the downside pressure was the latest solid performance by sterling which rose to an eight-month high against the dollar.

The FTSE 100 index managed to stay the right side of the 6,000 level, falling 71.4 to 6,007.2. The FTSE 250 was weakened by a sequence of bearish stories. The FTSE SmallCap dipped 2.7 to 2,681.1. Turnover in equities was 1.1 billion shares by the 6 p.m. count.