Around the World's Markets: London

LEADING SHARES surged to their highest close in a month, led by sharp gains in heavyweight bank shares as interest rate fears subsided. The FTSE 100 index ended 141.3 points or 2.3 per cent higher at 6,322.1, its best finish since 21 July.

The rate-sensitive bank sector contributed 50 points and five banks featured among the index's top 10 gainers. Market participants gambled the US central bank would raise rates by only 25 basis points. Market report, page 15