Nobody really expected the London market to remain at its rarefied level, but nor did anyone foresee such a fall. The FTSE 100 index encountered the initial attack of profit-taking that was almost bound to follow Wednesday's 150-point surge to an all-time closing high. But then the profit-taking carried on. By the close, Footsie had lost more than two-thirds of its previous rally to end the day down 101.1 at 6,206.5. The FTSE 250 index rose 5.9 to 5,226.1. The SmallCap edged forward 2.8 to 2,271.3.

Problems originated in the US. A long-dated bond auction on Wednesday was poorly received and conspired with signs of strong economic growth to send Treasury bond yields to their highest level for six months.

Glaxo announced a regulatory problem with one of its products and the positive trend that has pervaded the concentrated results season received a knock after the latest figures from Legal & General. Hopes of a more settled afternoon session were offset by the latest US data. Further pressure came from Asia when Hutchison Whampoa, the Hong Kong conglomerate, placed 50 million shares in Orange.

Turnover, which was boosted by the Orange stake sale, remained heavy at 1.14 billion shares, with more than 60 per cent represented by Footsie stocks.