Around the World's Markets: LONDON

LEADING SHARES fell almost 1 per cent after a shock rise in interest rates sparked fresh anxiety about economic prospects. The FTSE 100 sank 55.9 points to 6,253.6. Banks, telecoms and pharmaceutical stocks accounted for more than half the loss.

"It's the first shot in the Bank of England's struggle to reassert control over the economy," said Omar Sheikh, an analyst at Charles Stanley. "The hope is that the peak is going to be lower than it would have been."

Market report, page 25