RAMSEY CROOKALL & CO 21st June 2012

Evening Report The FTSE 100 closed 1.0% lower at 5566.36. Basic resources stocks weigh after disappointing data out of China, the euro zone and the US provoke concerns for the health of the global economy. The falling oil price hurt BP, which finished with a 3.2% loss. Later Thursday, ratings firm Moody's is expected to downgrade UK banks as part of its large-scale review of the sector. This will likely shape sentiment early next session.

Gloomy manufacturing data from China and disappointing economic activity figures from the Eurozone weighed on the mining sector on Thursday. Meanwhile, with the US Federal Reserve holding back from extra quantitative easing measures last night, the dollar strengthened meaning that greenback-denominated metals prices fell.

Anglo American, Vedanta Resources, Glencore, Kazkahmys, Xstrata and BHP Billiton were among the worst performers in afternoon trade.

Shares in terrestrial broadcaster ITV were on the up after Exane BNP Paribas reiterated its 'outperform' rating on the stock and Goldman Sachs kept its 'buy recommendation. In contrast, real estate investment trusts British Land and Land Securities were suffering after Societe Generale downgraded both stocks to 'sell'. Insurance stocks were extending gains made yesterday after it was revealed that the EU is thinking about 'phasing in' new capital rules for life insurers over the next seven years, easing the pressure and buying the industry time to meet new regulations. Fitch also said yesterday that insurance firms are loss exposed than banks to contagion risk triggered by a Greek exit from the Eurozone.

Sector peers Standard Life, Aviva and RSA Insurance were advancing today.

Unilever was in demand after Investec warned investors not to look too much into the profit warnings across the consumer goods sector, saying that the UK-listed company is not like its peers P&G and Danone. "For us, ULVR is a company that is gaining momentum rather than losing it, whose input pressures are getting better rather than worse, who is relatively less exposed to slowing geographies and who is less of a hostage to guidance fortune."

THE FTSE 100             closed           Down     55     @      5,566 THE DOW JONES            @ 17:00          Down     87     @     12736 THE NASDAQ               @ 17:00         Up       35     @      2894 Exchange Rates GBP – USD        @      17:00            1.5636 GBP - EURO      @      17:00            1.2424