It wasn't much in terms of points, but the impact on sentiment in London's equity market was much more important as the FTSE 100 posted its fifth consecutive rise and held above the psychologically important 5,200 level.

The fact that the market managed to close above 5,200 was seen by chart watchers as significant, but nowhere near as important as the index finishing above the next important upside level 5,286. However, the market has to confront the outcome of the three crucial interest rate decisions being taken this week. The first, the decision by the US Federal Reserve's open market committee, came well after London closed for business last night.

The FTSE 100 closed the session a mere 5 points firmer at 5,214.1, extending the rise over the past five sessions to 210.5. All the other main indices continued their strong performances too, with the FTSE 250 climbing an impressive 53.5, or 1 per cent, to 5,499.4, and the FTSE SmallCap 20.4, or just short of 1 per cent, at 2,367.3. The Techmark 100's excellent performance, up 23.02 to 1,456.97, came in the wake of the good showing by the Nasdaq Composite on Monday.

Dealers were wary ahead of the Fed meeting yesterday and were also concerned about the possibility that one or both of the Bank of England's monetary policy committee and the European Central Bank might not lower rates so quickly. There was no real surprise in London with news that the Halifax survey of British house prices showed a 0.5 per cent decline last month, news that was being interpreted as increasing the chances of a cut in UK rates.

The level of activity in the market came as a surprise to observers who had been expecting a much more sedate showing in front of the interest rate decisions. Turnover reached 2.66 billion shares, the highest daily level since October 17th.

Vodafone accounted for 22 per cent of total volume, amid hints that Hutchison Whampoa might have been selling down its stake in the company. But Vodafone shares continued their recent upwards move, with chartists talking the shares up to as much as 185p in the short term. Marks & Spencer shares jumped 3.5 per cent, responding to excellent interims and a bullish statement on prospects, while TMT stocks were keenly supported.