WORLD MARKETS

London

The FTSE100 fell in thin trade but closed above session lows as weakness in oil and gas stocks was countered by strength in financial stocks and miners. Gains on Wall Street also limited losses, but the blue-chip index closed down 12.6 at 5,902.6. The drinks can maker Rexam shed 1.8 per cent before tomorrow's figures from the group.

MARKET REPORT, PAGE 42

New York

Techs made small gains in light trading after broker upgrades helped the sector, but a Fed official's comments about possible interest rate increases pushed down the Dow. The insurance giant AIG, which is sensitive to interest rates, was the biggest negative influence on the blue-chip index, losing 1 per cent. The Dow closed 5.21 points lower at 11,339.84.

Europe

A strong Wall Street helped push shares to a three-month high after earlier data had shown German investor sentiment plunged to a five-year low this month. The Finnish utility Fortum was a leading gainer, adding 4 per cent after being given a "buy" rating. Frankfurt's DAX closed up 0.4 per cent and the CAC-40 in Paris gained 0.5 per cent.

Hong Kong

PetroChina and other oil stocks climbed on strong crude prices, helping recoup some of the previous session's losses after China's move to raise interest rates. The Hang Seng ended up 141.87 at 17,149.75, with insurers such as China Life also gaining. But the strong euro pushed the Europe-focused retailer Esprit Holdings down 1.2 per cent.

Tokyo

The Nikkei closed at a three-month high, up 1.33 per cent as blue- chip exporters advanced, helped by the euro's rise against the yen. The energy explorer Inpex Holdings climbed 1.9 per cent after US crude oil jumped more than $1 on Monday, while the weaker yen helped send Olympus 4.4 per cent higher. The index closed at 16,181.17

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