RAMSEY CROOKALL

4th    August

Evening Report

The FTSE 100 closed down 3.4% to 5393.14 as investors were left shaken over the health of the global economic recovery once again. Aside from the soft patch of recent US economic data, investors  are worried the European sovereign debt crisis is intensifying. Banking stocks took a hit on the sector's exposure to sovereign debt. Barclays ends down 7.7%. Lloyds Banking Group falls 10%, on its 2Q results. Friday brings US nonfarm payrolls announced before the US open.

Gold miner Randgold Resources’ share price rose after announcing that its second quarter gold production more than tripled, boosted by contributions from its new Tongon and Gounkoto mines and soaring gold prices, sending its shares higher. Randgold said the increased production of 184,711 ounces and the sale of gold held back at Tongon in the previous quarter pushed profits up 253% to $128.4m, from a year earlier.

Satellite operator Inmarsat watched as its share price crashed down more than 20% after the dismal results for its maritime sector, its core business, was reported. Inmarsat said, “as a result of faster than expected customer migration from higher to lower priced maritime services, together with lower customer spending levels in our land mobile and aeronautical sectors, our revenue growth in the first half has slowed and is unlikely to pick up in the second half as previously expected.”

Anglo-Dutch food and household goods giant Unilever was in demand after it posted higher sales and profits in the first half, though margins fell back as price rises failed to wholly offset the impact of higher input costs.

THE FTSE 100 closed                Down             191        @       5393

THE DOW JONES at 4:45              Down             351        @       11541                           NASDAQ COM at 4:45                 Down             75         @       2617                                       Exchange Rates GBP – USD           1.6311 GBP - EURO         1.1517