RAMSEY CROOKALL & CO 3rd September 2012

      Morning Report

The FTSE 100 is up 0.4%, nudging down a touch while sterling rises against the dollar following the release of better-than-expected UK PMI manufacturing data. The UK manufacturing PMI bounces sharply in August, rising to 49.5 from 45.2 in July and ahead of consensus estimates.  The BOE's monthly policy meeting concludes this Thursday. Meanwhile, Admiral is still the biggest faller on the FTSE 100, down 3.5% following a rating downgrade.

Miners lead the upside as weak manufacturing numbers from China spur hopes of policy easing by the PBOC. Evraz, Fresnillo, Antofagasta and Rangold were among the best performers.

Several stocks were being moved by broker ratings changes this morning. Chip group ARM Holdings was a heavy faller on the FTSE 100 after Deutsche Bank downgraded its recommendation to 'sell', while supermarket firm Morrisons was in the red after Nomura cut its rating to 'neutral'.

Meanwhile, Home Retail was making gains after Investec upgraded its rating on the stock from 'sell' to 'buy', saying that shares should react positively "to evidence of more resilient trading at Argos" after the group's second-quarter trading update next week.

Mining group Talvivaara surged early on after reassuring investors that rumours regarding the development of the company's cash position during the remainder of the year and ongoing or planned personnel reductions are incorrect.

Africa-focused oil group Ophir Energy rose after significantly upping estimates of potential resources at one of its sites in Tanzania.

THE FTSE 100              @ 10:00              Up     25          @      5,737 THE DOW JONES            closed                Up     90          @     130909 THE NASDAQ               closed                Up     18          @      3066

Exchange Rates GBP – USD        @      10:00                   1.5882 GBP - EURO      @      10:00                   1.2636