RAMSEY CROOKALL

21st  July

Evening  Report

The FTSE 100 closed up 0.8%, paring earlier losses to post gains as investors take comfort in a plan outlined by euro-zone finance ministers on how to handle Greece's sovereign-debt crisis. Banks lead the way as the picture around Greece's fiscal outlook starts to brighten.

Barclays ended 7.7% higher, with Lloyds Banking Group close behind, up 5.9% and Royal Bank of Scotland up 5.7%. Corporate news from the UK's biggest blue-chips helped the tone also. Anglo-Swedish pharmaceuticals company AstraZeneca was also in demand, following the approval for its drug Brilinta in the US.

Kingfisher, the DIY retailer, jumped higher despite seeing like-for-like sales fall 0.5% in the second quarter of 2011, compared to the same period last year. However, figures from the Office for National Statistics showed that price-cutting by retailers in June helped spark a partial rebound in sales, which grew by 0.3% by value and 0.7% by volume.

Meanwhile, Capita was the worst performer after half-year turnover and profit before tax came in a shade below market expectations at the outsourcing behemoth.

Brewing giant SABMiller also fell into the red despite growing lager and soft drinks volumes by 5% in the first quarter, helped by strong growth in developing markets.

Miners Xstrata, Lonmin and Rio Tinto fell as China’s manufacturing PMI dropped to a 28-month low.

THE FTSE 100 closed         Up 46 @ 5899                       THE DOW JONES at 4:50                     Up     110      @      12682                             NASDAQ COMP at 4:50                       Up       19       @      2833                                          Exchange Rates

GBP – USD          1.6294 GBP - EURO         1.1342