RAMSEY CROOKALL & CO

27th July 2011

Evening  Report

The FTSE 100 closed down 1.2% at 5856, led lower by banks as concerns about US and euro-zone debt escalate and following disappointing results from Spain's Banco Santander. Lloyds Banking Group down 4.3% and Barclays down 3.4%. City Index notes "a clear escalation in investor uncertainty over both the sovereign debt situation spreading to Italy and also the deadlock in the US between the Republicans and Democrats over how to reign in the burgeoning deficit and raise the debt ceiling." On the upside, however, Autonomy shares close +4.2% after a warm reception to its 2Q results.

Energy supplier Scottish & Southern Energy was the heavy faller, tumbling 4.85%, on the same day that utilities firm British Gas (owned by Centrica) received a £2.5m fine for mishandling customer complaints. Centrica also fell lower, albeit by a lesser extent (-1.2%).

The miners were in demand as gold and silver futures head higher. Lonmin, Fresnillo and Randgold Resources are among the highest risers.

BG Group is higher, extending gains after Tuesday's results, while BP also also firmed, attempting to recover after yesterday's sell-off.

Terrestrial broadcaster ITV fell lower after warnings that the outlook for the TV advertising market remains uncertain, despite earnings and revenue beating estimates in the first half.

Interim figures from cigarettes maker British American Tobacco underwhelmed as shares fell lower, despite numbers coming in slightly ahead of expectations, as higher prices offset volume weakness.

THE FTSE 100 Closed                              Down           73 @    5856

THE DOW JONES @ 16.45                            Down           74 @   12,498

THE NASDAQ COMP @ 16.45                          Down           44 @  2795

Exchange Rates

GBP – USD     @ 16.45         1.6357 GBP - EURO   @ 16.45          1.137