Around the World's Markets: LONDON

SHARES rallied yesterday, boosted by hopes of corporate activity and the increasing chance of an interest rate cut. The FTSE-100 index of leading shares closed up 72.6 points at 5827.9, putting an end to two days of losses. The second liners were less buoyant but still finished in positive territory. The medium cap ended 14.5 higher at 4,940.9, while the small cap rose 5.4 to 2,067.6.

A bearish economic forecast and a depressed manufacturing survey by the CBI fuelled hopes of an imminent rate cut.