Around the World's Markets: London

DISAPPOINTMENT THAT the Monetary Policy Committee only cut base rates by a quarter point and renewed worries about hedge funds teetering on the brink of disaster sent shares tumbling. At one time Footsie was down 229.7 points; it closed 130 lower at 4,698.9. Supporting shares were also hammered.

Banks were again in the forefront of the retreat, with Barclays suffering a 55p fall to 940p. But takeover talk lifted Standard Chartered 29p to 470p.

Derek Pain, page 25