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The Independent Online
The US suffered its biggest one-day drop in eight months on Thursday, when the Dow Jones Industrial Average lost 160 points, or 2.2 per cent, on fears that interest rates could rise later this month. Prices recovered somewhat on Friday after a producer price report showed inflation was subdued. The index fell 65.43 points or 0.9 per cent on the week.

In Britain, the FT-SE 100 ended one of its busiest weeks for company results little changed as the market was hobbled by losses in the US. The index gained just 0.9 per cent to 4424.30. Glaxo and other stocks with substantial US interests climbed while banks, which have risen more than 14 per cent so far this year, were hurt by concerns about rising interest rates.

In Germany, the DAX hit record highs early on but ended the week down 0.5 per cent as the dollar retreated. Chemical stocks led Friday's recovery after posting heavy losses earlier in the week on disappointing results from Hoechst.

In France, the CAC 40 fell 2.3 per cent, with losses in capital equipment, food and car stocks. Michelin and Generale des Eaux fell 6 per cent. Some losses were recouped on Friday and investors predict further gains. The CAC rose 19 per cent in the last three months against a 10 per cent gain in the FT-SE 100. Copyright: IOS & Bloomberg