Around the World's Markets: London

AFTER TWO days of gains blue chips fell back, ruffled by the Brazilian interest rate increase and the UK inflation rate. Footsie closed 96.3 points lower at 6,027.6 and supporting indices were also weak.

The latest mega-deal left the two participants nursing sharp falls. British Aerospace, buying Marconi from the General Electric Co for pounds 7.7bn, dived 68p to 425.5p, and GEC dulled 31p to 546.5p. Suggestions that the sale will prompt GEC to look for acquisitions boosted Psion and Racal Electronic