Around the World's Markets: London

HOPES OF a New Year base rate cut helped shares to turn in an impressive performance although trading was thin. Footsie jumped 65.5 points to 5,908.8, its first closure above 5,900 since July. Supporting shares were also strong.

Marks & Spencer rallied a further 9.25p to 417.75p, despite the most savage profit downgrading yet to appear. A small brokerage, Seymour Pierce Butterfield, suggested this year's profits would fall to pounds 760m; last year M&S produced pounds 1.2bn.

Derek Pain, page 13