Around the World's Markets: London

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BLUE CHIPS brushed aside the latest outbreak of hostilities in the Gulf as well as President Clinton's impeachment worries, and Footsie closed near its best level of the day - up 54.8 points at 5,685.2 in brisk trading. Supporting shares made more modest headway.

Rolls-Royce was one of the best performers, climbing 12.75p to 244p on talk that it could barge into the signalled reshaping of the European defence industry.

Derek Pain, page 23