RAMSEY CROOKALL

3rd  October 2011

Evening Report

The FTSE 100 index fell 1.00%,  paring losses after a better-than-expected reading on the U.S. manufacturing sector. The index closed the third quarter down 13.7%, the biggest quarterly percentage loss since Sept 2002.

Banks in London followed their European counterparts lower after news that Greece won’t meet deficit targets this year, which could increase worries of the country defaulting on its debt obligations. Standard Chartered closed down 4.97%.

Mining stocks fell on worries about China’s economic growth. Shares of Vedanta Resources PLC  slid 8.44%, while Xstrata PLC slid 3.4% and Rio Tinto PLC dropped 2.19%.

Shares were down at Burberry after Nomura maintained its neutral rating on the British luxury brand ahead of the group's first half trading update on 12 October. The broker expects Burberry to report 29% constant currency sales growth to £820m, but forecasts a 50 basis point decline in the first half earnings before interest and tax margin in the key retail/ wholesale division, due to operating costs (including investment in flagships, customer services and share schemes).

Rising gold prices sent Randgold Resources on the up. The stock was the best performer on the index closing up 3.49%

THE FTSE 100 closed                         Down      52          @         5075

THE DOW JONES at 16:40                      Down      10          @         10902                 NASDAQ COMP at 16:40                        Down      5           @         2410               Commodities

Spot Gold $/Oz           $1650             Up                   1.68 % Brent Crude Oil          $102.40            Up                   0.34 %

September Delivery   

Exchange Rates GBP – USD           1.5466 GBP - EURO         1.1663