Around the World's Markets: New York

WALL STREET rallied in late morning trading as gains in technology, financial and drug companies further boosted sentiment. The Dow Jones was up 91 points, or 0.86 per cent, at 10,700 by midday.

Pharmaceutical stocks were up for a second straight day as American Home Products and Warner-Lambert confirmed a merger deal worth nearly $72bn. The merger would produce the largest pharmaceutical company in the world.