The spectre of a rise in US interest rates, with all the historic implications for Wall Street and the rest of global markets, continued to haunt London's equity market yesterday.
The Dow Jones Industrial Average, which had fallen almost 3 per cent during the previous week, flexed its muscles and posted a three-figure gain during London trading hours, in defiance of doubtful European markets.
The FTSE 100 index just managed to remain above the 6,400 level, eventually closing 29.7 off at 6,405.7.
Wall Street's rally was sourced in the bond market where good gains quickly encouraged UK gilts and helped equities rally from their lowest levels.
But the London market's junior indices, although well off their best at various points during the day, were never under anything more than light pressure, and both the FTSE 250 and SmallCap finished the day marginally ahead on balance. The FTSE 250 was up a net 2.1 at 5,869.2 and the Small Cap 2.5 firmer at 2,653.8.
