The London stock market shook off its recent interest rate-induced lethargy to mount a determined recovery, despite a shaky start on Wall Street.

The FTSE 100 index, which seemed in danger of dropping below 6,000 on Tuesday, moved into higher ground from the start and ended the day 129.7 points higher at 6,144.4.

Technology stocks led the way once more and the Techmark index looked for a while as if it might close above the 5,000 mark for the first time. It has already more than doubled since its launch in November and closed up 140.67 at 4997.64.

Although there have been some recent signs that investors have been bargain-hunting among the market's "old economy" stocks, there has been little sign of a decline in enthusiasm for the tech sector. Sage, the accountancy software group, was the best performer in the FTSE 100 index, while QXL.com, the internet auction company, achieved the same feat in the FTSE 250.

Telecoms stocks were also well supported, with BT continuing its rebound and Vodafone AirTouch again higher in heavy volume.

For once, the blue chips outperformed the smaller and medium-sized stocks yesterday. The FTSE 250 gained 43.2 to 6,361.6 and the SmallCap just 9.2 to 3,280.4.

Wall Street seemed to have less of an influence than usual on the London market. Although its recovery in late trading on Tuesday seemed to help sentiment in the morning, an opening fall in the Dow Jones Industrial average failed to deter British investors in the afternoon. The Dow was around 120 points lower as London closed.

But some traders were still suspicious, pointing to the latest round of Congressional testimony from Mr Alan Greenspan, the chairman of the US Federal Reserve.

Last week, Mr Greenspan indicated that substantially higher interest rates might be needed to slow the US economy. "Greenspan wants the market lower," said one trader.

Domestic factors were broadly supportive. The minutes of the March meeting of the monetary policy committee showed no one had voted for a half percentage point increase in rates. And results for tech heavyweight Logica were well received.

IBES, the information company, says that 60 per cent of companies that have so far reported 1999 earnings have produced results that were better than consensus forecasts. Year-on-year earnings growth is running at 11.8 per cent, compared with forecasts of 10.3 per cent.

Volume was 2.69 billion shares by the 6 p.m. count.