RAMSEY CROOKALL

9th  August

Evening Report

The FTSE 100 closed 1.9% higher, ahead of the Fed interest rate announcement and shaking off fears about a possible double-dip recession. The index spent much of the day in the red, only occasionally rising into positive territory. Banks are among the worst performing sectors. Miners make gains on hopes that demand from countries such as China will not be impacted too severely by another recession in the West; Antofagasta is up 6.1% and Rio Tinto 4.7% higher. The BOE's quarterly Inflation Report is tomorrow morning, while the U.S. publishes wholesale inventories data at in afternoon trading.

Banks remained a sore spot in London, with Royal Bank of Scotland Group PLC falling 6.5%, Barclays PLC off 1% and HSBC Holdings PLC down 0.7%. Global hotels group InterContinental Hotels's share price was given a boost after it saw revenue per available room grow by 6.7% from a year earlier in the first half of 2011. The increase was driven by strong demand in Greater China and the US, where the Holiday Inn relaunch is delivering sustained outperformance.

Electricity generator International Power saw its share price drop despite pointing to its strong performance in the Americas as it unveiled a rise in revenues and profits in the half year to 30 June. The company admitted that growth in the Americas was “partially offset by lower results between periods in UK-Europe,” International Power said.

Economic troubles were hitting even silver and gold mining giant Fresnillo, usually regarded as a "safe" option during market instability. The stock  headed south despite another all-time high gold price.

THE FTSE 100 closed                      Up              95             @       5164

THE DOW JONES at 16:50                   Up              173            @       10983                          NASDAQ COM at 16:50                      Up              71             @       2429                         

Exchange Rates

GBP – USD           1.6195 GBP - EURO          1.1379