Another burst of takeover and merger stories, plus some comforting performances from stock markets across the globe, injected renewed vigour into the London market yesterday. But, after a sparkling opening performance that saw the FTSE 100 index hurdle the 6,600 barrier, London failed to maintain its early enthusiasm and the best gains in the 100 index were gradually eroded.

Wall Street, whose minor gain on Friday was not one of the main bull points for London, was a damper for the UK market. It came in easier, rallied, and then slid away to post a 50-point retreat minutes after London closed. The trigger for Wall Street's slide came from the US bond market where the long bond yield moved above 6 per cent.