Markets refuse to panic

(First Edition)

FEARS of a rerun of the 1987 crash proved unfounded yesterday as the world's leading stock markets reacted calmly to Friday's rise in US interest rates, writes Peter Torday.

London shares tumbled almost 100 points at yesterday's opening, but once it was clear Friday's 96-point fall on Wall Street would not be repeated, the FT-SE 100 index recovered to close at 3419.1, down 56.3 points on the day.

Frankfurt, Tokyo and Paris stocks also fell but the sharpest decline occurred in Hong Kong, where share prices plunged by over 6 per cent.

and brought predictions that the bull market may be over for some far eastern markets.

Wall Street rally, page 25

Leading article, page 15

View from City Road, page 26

Hamish McRae, page 27