Around the World's Markets: Milan

THE MIBTEL index closed 247 points higher at 19,888 and the Mib30 rose by 395 to 29,534, boosted by expectations of rate cuts and gains in Telecom Italia after Berardino Libonati replaced Gianmario Rossignolo as chairman.

Brokers said gains in Telecom Italia were capped by uncertainty over alliance talks with Cable & Wireless and Unisource and who will become the Telecom Italia's new chief executive officer.

After the markets closed, the Bank of Italy cut the discount rate to 4 from 5 per cent.