RAMSEY CROOKALL

3rd  October 2011

Morning Report

The FTSE 100 is down 2.1%, but off its lows after the release of slightly better than expected UK manufacturing PMI data for September. This comes in at 51.1, in expansion territory, ahead of August's 49.4, and above the forecast 48.5. Still, the underlying tone remains one of pessimism, with Greece once again scaring investors as it admits it will miss deficit targets. Safe havens benefit from investor fears, and the rising price of gold helps Randgold Resources to be one of only gainers on the FTSE 100, advancing 1.74%.

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 6.2%, while Royal Bank of Scotland Group dropped 5.6% and Lloyds Banking Group fell 4.1%. 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 4.5%, while Rio Tinto PLC dropped 4% and Xstrata fell 4%.

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 10:00                         Down       105      @         5023

THE DOW JONES closed                          Down       240      @         10913                 NASDAQ COMP  closed                           Down       65       @         2415               Commodities Spot Gold $/Oz           $1653                  Up                1.87 % Brent Crude Oil          $101.45                Down              0.65 % September Delivery     Exchange Rates GBP – USD           1.5521 GBP - EURO         1.1630