The London market yesterday continued a rally that has already lasted longer than the average British summer. Footsie took a look at a 143-point fall on the Dow Jones Industrial Average, wavered slightly and then chose to ignore it.

Although off slightly in the first half hour, the blue-chip index regained its equilibrium quickly. FTSE 100 closed 21.5 higher at 6,453.0, extending a run that began on May 28th when it was down at 6,200. Most European markets were also slightly higher. The activity lacked the conviction of serious trading volume and the overall turnover suggested that the big institutional players were holding back at least until the Bank of England pronounces on interest rates today. They might stay away for longer. The Chancellor and the governor of the Bank of England are expected to set out their stalls at the Mansion House dinner tonight.

The FTSE 250 under-performed the leading index, rising only 4.3 to 5,784.6. The SmallCap gained 11.7 to 2,595.4. Turnover by 6 p.m., when all the delayed trades had been recorded, reached only 900 million, the lowest volume so far this week. There was heavy trade in British Steel, Invensys and Safeway, and just over 50 per cent of the business was in Footsie stocks.