THERE was an element of anti-climax around trading rooms at the performance of the equity market following developments in international interest rates.

The disappointment stemmed mostly from the refusal of Germany's Bundesbank to reduce its key Lombard and discount rates, although the market's displeasure was diluted as the bank cut a further 10 basis points off its repo rate and fixed the latter at 3.3 per cent for the next two weeks.

Once again, the second-line stocks delivered a better performance than their seniors, with the FTSE Mid-250 always outperforming the FTSE 100.

London's rather disappointing performance came in the wake of a similar response by Wall Street overnight to the cut of 25 basis points in the Fed Funds rate and in the discount rate.

Although global markets had mostly been expecting the reduction in US rates, traders and other market observers said Wall Street's reaction had been surprising.

News of better than expected trade figures for November - the deficit was the lowest monthly figure since March last year - failed to produce any real reaction in gilts or equities.

Turnover at 6 p.m. was a highly respectable 859.5 million shares. Retail business on Wednesday was worth £2.43 million sterling