RAMSEY CROOKALL

3rd  October 2011

Afternoon Report

The FTSE 100 is down 1.6%, still weak but coming off session lows, with gold miners pushing up strongly as spot gold prices soar. Other defensive stocks post gains, such as Vodafone up 0.3% and United Utilities up 0.2%. But sentiment is still weighed by news that Greece will miss its deficit targets this year US ISM manufacturing data is released before the US open.

Banks in London followed their European counterparts lower after reports that Greece won’t meet deficit targets this year, which could increase worries of the country defaulting on its debt obligations. Asia stocks were also hit by Greece worries. Shares of Barclays PLC fell 4.5%, while Royal Bank of Scotland Group dropped 3.5% and Lloyds Banking Group fell 3.1%.

Mining stocks also led markets south, with copper futures lower and gold and silver prices higher. Other base-metals prices also fell. Shares of Vedanta Resources PLC slid 4.7%, while Rio Tinto PLC dropped 3.2% and Xstrata fell 3.8%.

International engineering and project management company AMEC is lower  despite announcing that it has been awarded a Front End Engineering Design contract for GDF Suez E&P UK's Cygnus gas field development in the North Sea.

THE FTSE 100 at 12:00                     Down         84       @       5044

THE DOW JONES closed                      Down         240      @       10913                NASDAQ COMP  closed                       Down         65       @       2415               Commodities

Depot Gold $/Oz           $1659            Up            2.22 % Brent Crude Oil           $102.34          Down          0.22 % September Delivery     Exchange Rates GBP – USD           1.5526 GBP - EURO         1.1614