RAMSEY CROOKALL

1st August

Afternoon Report

The FTSE 100 is up 1.6%, extending gains as US futures indicate a strong start on Wall Street. Basic resources shares buttress the index as copper prices advance on hopes of continuing global economic recovery; China's July manufacturing PMI came in better than expected, helping resources stocks. Vedanta Resources adds 3% and Rio Tinto gains 2.1%. Meanwhile, Intertek gains 5.8% as it impresses with its 1H earnings. HSBC also helps power the index forward as 1H earnings come in better than forecast.

Testing and inspections firm Intertek was the high riser, after revenue in the first half of 2011 rose 17%. "Our businesses continue to perform well overall, with strength in some areas offsetting slower growth in others," said Wolfhart Hauser, chief executive of Intertek.

The miners are among the best performers, with Kazakhmys, Vedanta Resources, Rio Tinto, BHP Billiton and Antofagasta rising higher.

Outsourcing behemoth Serco was in demand after it signed a new hospital services contract, worth A$1.3bn (£850m), in Australia.

Net rental income at retail-focued real estate group Hammerson came in 2.8% higher, up 3.9% on a like-for-like basis, driven by lettings and rent reviews in the UK and indexation in France. Shares were 2% higher in early trading.

Essar Energy climber higher after announcing that it has completed the $350m

THE FTSE 100 at 12:05   Up 97 @ 5913                   

THE DOW JONES closed         Down       96      @       12143                           NASDAQ COM closed            Down       9       @        2756                                      Exchange Rates GBP – USD           1.6424 GBP - EURO         1.1378