RAMSEY CROOKALL

5th September 

Morning Report

European stock markets have slid, after Friday's weaker- than-expected U.S. monthly payrolls report fuelled worries about a further deterioration in economic conditions, leading investors to sell equities and the euro currency, and instead favor traditional safe havens such as the Swiss franc and core government bonds. The FTSE 100 is down 1.9%, falling further into the red following the release of U.K. PMI services data for August. The reading disappoints, coming in at 51.1 versus the 54 expected.

Banks are leading the shares losing on the FTSE 100, with shares of Royal Bank of Scotland  tumbling 7.5% after it was named last week in a lawsuit by the Federal Housing Finance Agency. Also named in the suit were Barclays PLC down 6.8%, HSBC Holdings PLC which is down 1.6%.

FTSE 100 mining giants Rio Tinto and Anglo American dropped after announcing that they are to offload their respective interests in South Africa-focused copper miner Palabora Mining Company.

Energy services company Hunting opened lower after completing the acquisition of the business and assets of W L Doffing, a machine services provider, for a cash consideration of $20.8m (£12.8m). The stock is trading down 2.4%.

THE FTSE 100 at 10:00                   Down       101        @       5190

THE DOW JONES closed                    Down       253        @       11240                        NASDAQ COM closed                       Down       65         @       2480               CommoditiesSpot Gold $/Oz           $1892 Brent Crude Oil          $111.34 September Delivery     Exchange Rates

GBP – USD           1.6127 GBP - EURO          1.1400