RAMSEY CROOKALL & CO April 4th  2012

Evening Report

The FTSE 100 closed down 2.3% at 5703.77, slumping in a global selloff sparked by Tuesday's Fed meeting minutes, which dashed hopes for more QE, together with growing worries about the Spanish economy after a poor debt auction. Also, positive US ADP jobs data were tempered by a weak US ISM non-manufacturing report. In London, the banks and mining stocks took the brunt of the losses. Thursday brings UK industrial and manufacturing production reports, but the highlight will be the BOE's rate decision announced at 11:00.

Industrial metals and mining stocks were the worst performers of the day on Wednesday as commodity prices took a tumble on the back of comments from the US central bank. Last night’s minutes from the latest meeting of the Federal Open Market Committee showed that members had become less inclined to boost the economy through quantitative easing.

Fresnillo, Evraz, Talvivaara and Berkeley Mineral Resources were heavy fallers in the metals and mining sector. FTSE 250 iron ore miner Ferrexpo also took a hit after announcing that its bid to move a long-running shareholder dispute from Ukrainian courts to the UK has been denied. It is thought that the Ukrainian courts are not neutral grounds.

BP plans to sell its shares in most of the North Sea oil fields where it doesn't hold operational control as the U.K. energy giant continues to reshape its portfolio to concentrate on higher-margin assets elsewhere in the region, an industry source has said.

Retailers were lower, with shares of Next slipping 4%. The retailer said late Tuesday that Chief Executive Simon Wolfson sold 125,000 shares in the company.

U.K. house prices jumped in March as first-time buyers rushed to take advantage of a tax break that expired at the end of the month, mortgage lender Halifax said Wednesday.

THE FTSE 100       closed Down 134 @ 5703  THE DOW JONES           @ 17:00       Down           145  @    13054 THE NASDAQ              @ 17:00          Down           49   @     3063

Exchange Rates

GBP – USD       @      17:00                         1.5880 GBP - EURO     @      17:00                         1.2097

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