STRONG push by the utilities came to the rescue of a London equity market which had, at first, looked destined for another day of inactivity.
Utilities occupied the top six places in the FTSE 100 performance table and provided no less than six of the best performing stocks in the FTSE Mid-250.
The surge in the stocks came after a report of a rift between Mr Tony Blair, the Labour leader, and Mr Gordon Brown, shadow chancellor of the exchequer, over the scope and size of the proposed windfall profits tax on the companies.
Outside that area, the stock market was quietly steady, unsettled initially by Wall Street's over-night retreat, which confirmed the fears of the more cautious observers that the US market might have seen the end of its recent rally.
The Dow Jones Industrial Average closed 45 points down on Wednesday evening and was looking easier again at the start of trading in New York yesterday, after the weekly jobless claims and ahead of today's news on producer prices and retail sales for March.
Fears abound that the US Federal Reserve might nudge US interest rates up again after the next FOMC meeting, scheduled for May 20th.
On the domestic front, the regular monthly meeting between Mr Kenneth Clarke, Chancellor of the Exchequer, and Mr Eddie George governor of the Bank of England, took place in Nottingham.
Dealers said no change in British interest rates was expected to follow the meeting but warned that British rates were expected to be increased by as much as 50 basis points shortly after the general election on May 1st.
By the close, the FTSE 100 index had comfortably regained the 4,300 level, finishing a net 20.9 higher at 4,313.2, a two-day gain of 43.9. The FTSE Mid-250 improved at a more sedate pace, edging up 4.7 to 4,544.3,
