Around the World's Markets: MILAN

ITALIAN SHARES responded to a larger than expected cut in interest rates with a 2 per cent leap in early trading. Banking shares were in demand with Banca di Roma and BCI while Banca Intesa were briefly suspended after gaining 10 per cent.

Industrial shares also gained, with Fiat up more than 5 per cent at one point only to slip back after chairman Giovanni Agnelli indicated that second half results would be worse than the first half. The Mibtel index closed up 296 points, at 20,184, while the Mib30 rose by 471 to 30,005.