RAMSEY CROOKALL

5th   October 2011

Morning Report

The FTSE 100 maintains gains after PMI data shows a rebound. The UK services PMI index rose to 52.9 in September from 51.1 in August. Investors seem little concerned by revised 2Q GDP numbers which show a smaller gain than previously forecast, up 0.1% compared with 1Q. First quarter growth was also revised down, to 0.4% from 0.5%.

Burberry is one of the leading gainers as it rebounds from recent losses made on the back of fears about a slowdown in China. Sainsbury gains 4.5% as it impresses with 1H numbers. Bank shares are also firmer. Royal Bank of Scotland adds 3.2%, Lloyds Banking Group advances 2.9%. Still to come, the US ADP employment report released before the market report.

Commodities stocks were mostly higher, including a 2.5% gain for oil giant Royal Dutch Shell PLC and a 2.4% rise for rival BP PLC as crude-oil futures strengthened. Sainsbury rose after accelerating sales in the second quarter. Despite many expecting the supermarket to report a weaker second quarter than the first, when sunny weather nd the UK royal wedding gave a boost to takings, sales by 7.8% in the second quarter, surpassing the 7.3% growth rate seen in the first three months of the year.

In other company news, trendy fashion retailer SuperGroup saw its share price plummet over a quarter after revealing a major problem at its new Barnwood warehouse in Gloucestershire, which it estimates will cut profits by £6-9m this year.

THE FTSE 100 at 10:30                  Up          71         @         5015

THE DOW JONES closed                   Up          153        @         10808              NASDAQ COMP closed                     Up          68         @         2404               Commodities Spot Gold $/Oz           $1600         Down                   1.48 % Brent Crude Oil          $101.01       Down                   0.81 % September Delivery   

Exchange Rates GBP – USD           1.5449 GBP - EURO          1.1610