RAMSEY CROOKALL

Evening Report

27th October 2011

The FTSE 100 ends 2.9% higher as investors welcome a deal by euro-zone leaders to tackle the region's debt crisis. Banks are the star performers, with Barclays up 17% and Royal Bank of Scotland up 10%. Miners were  close behind; Vedanta Resources up 12%, Glencore up 9.9%.

The Eurozone and the Institute for International Finance (IIF) have agreed on a voluntary ‘haircut’ on Greek debt of 50%, which is expected to allow the country to reduce its stock of debt to 120% of GDP by the year 2020 from 160% now. As well, the Eurozone will offer €30bn in credit enhancements to the private sector in exchange.

An agreement has also been reached on increasing the size of the European Financial Stability Fund. The amount remaining, following aid payments so far to periphery nations, and which is approximately €290bn, will be leveraged by around 4-5 times, producing a headline figure of around €1tn.

Royal Dutch Shell reported that it had doubled its earnings in the third quarter. However, the shares rose by just 1%, underperforming on a relative basis to the FTSE 100, after reporting that output was slightly lower.

Pharmaceuticals giant AstraZeneca's rise was rather subdued, at just 1.26%, after it reported that revenues fell 2% at constant currency in the third quarter.

Global diversified miner Anglo American  announced today that it may spend up to US$15 billion on expanding its Australian coal operations over the next eight years.

Laird rose strongly on the FTSE 250 after announcing that revenue from continuing operations rose by 18% in the third quarter, as it attempts to shake off its underperforming businesses.

THE FTSE 100 closed                  Up            160        @         5713

THE DOW JONES at 16:40               Up            276        @         12145   

THE NASDAQ COMP at 16.40 Up      56 @ 2706                Commodities Spot Gold $/Oz           $1734                     Up         0.53 %     Brent Crude Oil          $111.81                   Up         2.11 %

Exchange RatesP – USD               1.6083 GBP - EURO             1.1342