RAMSEY CROOKALL & CO 30th July 2012

Evening Report

The FTSE 100 ends 1.2% higher at 5693.63, continuing to perform after positive rhetoric from the ECB last week. The BOE holds its rate-setting meeting Thursday, and there is the potential of more QE, while the Fed makes its announcement Wednesday.

 International Consolidated Airlines lead the FTSE gainers, rising 5.8% on a read-across from sector peer Air France's slightly better-than-expected figures.

The banking and resources sectors were among the best performers on Monday as risk ppetite increased on the back of stimulus hopes. Barclays, RBS, ENRC and Xstrata were high risers by mid-afternoon.

Global banking group HSBC was along among them after seeing an 11% rise in reported pre-tax profit in the first half to $12.7bn.

Electricity and gas provider National Grid edged higher after saying it achieved a "solid operational and financial performance" in its first quarter and is keeping its positive out look for the full year unchanged.

Also on the up was insurance giant Aviva, which looks to be teeing up its US division for a £1bn sale. The Sunday Telegraph has reported the group's Chief Financial Officer, Patrick Regan, has been holed up in the US HQ in Iowa, getting the unit ready for a disposal.

Meanwhile, publishing group Pearson was firmly out of favour following Friday's first-half results. Nomura maintained its 'reduce' rating on the stock this morning, saying that organic growth of just 0.6% is "unfeasibly lower" for a 14.4x P/E multiple.

Consumer products group Reckitt Benckiser fell after 3.8% organic growth in the first half came short of consensus estimates of 4.2%. Jefferies maintained its 'hold' rating on the stock this morning, saying that there has been "some evidence of margin decline".

THE FTSE 100             closed            Up         66       @      5,693 THE DOW JONES            @ 17:00          Down      16       @     13059 THE NASDAQ               @ 17:00           Down       15       @      2943 Exchange Rates GBP – USD        @      17:00                 1.5693 GBP - EURO      @      17:00                 1.2810