Around the World's Markets: London

THE FTSE 100 suffered its biggest fall in four weeks as renewed fears of further UK rate rises rattled banks and Vodafone AirTouch unnerved investors with the biggest hostile bid in history. The index closed down 68.5 points, 1 per cent, at 6,482.3.

It was the biggest one-day loss since 15 October when Federal Reserve chairman Alan Greenspan urged banks to cover themselves against financial market meltdown, prompting a 132-point fall.