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Monday 28 June 1999 23:02 BST

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BLUE CHIPS closed slightly lower yesterday after a sluggish session dominated by fears of a US interest rate rise.

The FTSE 100 finished 29.7 lower at 6,405.7 in thin trading as many big players declined to trade ahead of tomorrow's decision by the US Federal Reserve. A strong opening rally on Wall Street failed to dispel the leading index's gloom and the day's gains were confined to the second liners. The FTSE 250 squeezed 2.1 higher at 5869.2, while the Small Cap ended 2.5 better at 2653.8.

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