Around the World's Markets: London

AFTER MONDAY'S strong advance, shares could make only a brief response to New York's opening surge. After a 52.8-point gain Footsie ran out of steam, ending with a 2.8-point fall at 5,344.2.

British American Tobacco, freed from its financial operations after a demerger, were the best blue-chip performer, adding 128.5p to 466p. Its old financial side, Allied Zurich, was more subdued, losing 30.5p to 786p. Housebuilders gained on hopes of lower interest rates.