RAMSEY CROOKALL

18th  August

Morning Report

The FTSE 100 is down 2.3%, pushing further into the red as banks and mining stocks extend declines amid worries about global growth. Vedanta Resources down 5.2% and Barclays down 5.4%. Traders  note jitters ahead of key US data later.

Philadelphia Fed and existing home sales are announced just before the US open. The miners are among the worst performers, with Kazakhmys, Vedanta and Rio Tinto among the heaviest fallers, partially offsetting the gains made yesterday.

FTSE 100 mining giants Anglo American, BHP Billiton and Xstrata fell despite announcing that a coal mine in Colombia, in which they own a 33.3% interest each, has received approval for its $1.3bn expansion project.

Banking titans Royal Bank of Scotland, HSBC and Barclays are also out of favour, extending losses made yesterday. Suggestions that European leaders could resurrect the idea of a financial transaction tax sent shares of financials into a spin on Wednesday.

International Power, the power generator that is 70% owned by French utility company GDF Suez, fell after announcing that it is to expand the Jirau Hydro project, the largest hydro power project currently under construction in the world.

THE FTSE 100 at 10:30                  Down       122        @       5209

THE DOW JONES closed                   Up          4         @       11410                        NASDAQ COM closed                      Down       11         @       2511                               Commodities Spot Gold $/Oz           $1795 Brent Crude Oil          $109.28 September Delivery     Exchange Rates GBP – USD           1.6506 GBP - EURO         1.1468