Thursday, June 4
David Harbidge of Barclays Stockbrokers

The surprising interest rate increase of 0.25% at lunch time as base rates move to 7.5% caught dealers on the hop. The market fell quite significantly, and gilt government stocks also moved lower in response to the hike in rates.

The all-important question: Is this the final increase or could there be more around the corner?

Railtrack led the way in the larger companies. Shares continue to benefit from a positive sentiment following their agreement yesterday to acquire control of the channel tunnel rail link.

Other bright spots were Boots which announced satisfactory trading results and United News and Media which benefited in response to positive broker comment.