RAMSEY CROOKALL

6th September 2011

Evening Report

The FTSE 100 closed up 1.1% after a session marked by swings between losses and gains. Basic resources are broadly higher after US ISM non-manufacturing data comes in better than forecast, bolstering hopes the US will avoid another recession. Banking stocks finish lower however after giving up early gains made as traders sought bargains, only to sell them off again.

Coffee shop, restaurant and hotel owner Whitbread boosted its share price after accelerating revenue growth during the first half, posting a 12.9% improvement in sales in the second quarter, up from a 9.2% increase in the first three months of the year. On a like-for-like basis, sales rose 4.8% in the 11 weeks to 18 August.

Fresnillo PLC and Randgold Resources were firmer, rising 3% and 3.2% respectively as gold prices rebounded to trade at around $1,900 an ounce early in the session. Other mining stocks were also higher, including a 1.2% rise for heavyweight BHP Billiton PLC.

The U.K.’s bank stocks had a choppy session, first rebounding from Monday’s heavy losses before largely surrendering gains as European lenders fell, sovereign contagion fears again causing concern among investors. Brewing and pubs group Greene King opened higher as it saw like-for-like (LFL) year-on-year sales growth in its retail business in the 18 weeks to 4 September, despite going up against tough comparatives that were boosted by last year's World Cup.

THE FTSE 100 closed                            Up          54        @       5156

THE DOW JONES at 16:45                         Down       230        @       11010                        NASDAQ COM at 16:45                            Down       43         @       2436               Commodities Spot Gold $/Oz           $1873 Brent Crude Oil          $111.32 September Delivery   

Exchange Rates GBP – USD           1.5965 GBP - EURO         1.1393