Unanimous interest rate decision fails to buoy markets

A rally on the London markets following the Bank of England's minutes on this month's interest rate decision has petered out.

The FTSE-100 Index of leading stocks is down 30.8 points at 5949.3.

It is showing no sign of breaking back through the psychologically important 6,000 barrier.

Publication of the Bank's Monetary Policy Committee minutes that this month's rate cut had been a unanimous decision bolstered confidence in outlook for the UK economy, putting the Footsie ahead 18.8 points.

But the rally has not lasted, as weaker techs, telecoms and banks drag the market lower. Sharp falls on the US markets, particularly on the technology-dominated Nasdaq and in the Far East, have compounded the sense of gloom.

The decline follows Tuesday's bloodbath on the markets, where the Footsie finished down 113.9 points, its lowest closing point since October 1999 and the first time it had finished below 6,000 points since last April.

The Footsie fallers' board is being led by computer services firm Logica, off 6%, or 91p at £15.04. Its fall comes despite a strong set of half-year figures, showing revenues and profits racing ahead. But it also reports a 4% drop in North American revenues, which it blames on the slowing US economy.

Others dropping included telecoms equipment firm Spirent, down 22p at 393p, software group Autonomy, off 8p at £15.90 and electronics firm Marconi, down 28½p at 491½p.

Chip designer Arm is down 19½p at 375p, computer services group CMG is down 40p at 810p and FTSE-250 software firm Baltimore Technologies is off 22¾p at 289p, again despite a strong set of figures.

Among the telecoms, sentiment towards Vodafone continues to be poor, and it is off 3¾p at 186¼p.

Banking stocks are also suffering, after Tuesday's decline in the sector caused by fears of a costly mortgage price war. Halifax, which has cut its base mortgage rate, is off 12p at 668p, and Barclays is down 52p at £22.18.