London stocks were hit yet again by fears of a global credit crunch after markets slumped in Japan and Hong Kong. However the FTSE 100 recovered, ending down just 34.2 points at 6,109.3, helped by benign economic figures and the news that rate setters at the Bank of England had voted unanimously last month for interest rates to remain at 5.75%.

Developers also bounced back. Hammerson was up 26p to £12.40 and Land Securities put on 23p at £17.36. LandSecs has been buying back shares at a discount to its net asset value, and bought another 114,000 yesterday at prices up to £17.25. Activist investor Laxey is said to have bought a 1% stake in recent days.

Intercontinental Hotels was off 40p at £10.49 after Deutsche Bank warned that the credit crunch could eventually dry up new hotel developments.