Last night's reversal in New York triggered a hefty markdown in the futures pit, and that hit London's share market as well. At 08:54 the FTSE 100 was down 18 points at 5880.4.

Investors and dealers are still waiting for the Bank of England's Monetary Policy Committee midday announcement on interest rates - although it is expected that the rates will stay steady.

Liffe's June FTSE future was trading at an outright discount to cash of some 20 points, paving the way for a 30 point drop.

Daily Mail & General Trust, the news- paper group on the verge of entry to the FTSE 100 index, today boosted its case for joining the elite by reporting a 24% jump in first half profits.