RAMSEY CROOKALL & CO

24th June 2011

Evening  Report

The FTSE 100 closed up 0.4% at 5697, closing in the black but off the day's highs as worries about the Italian bank crisis overshadowed some of the more positive drivers. These include a bigger-than-expected rebound in US orders for durable goods and Greece reaching an agreement with EU/IMF on a five year austerity plan late Thursday.

Miners, on the whole, are wanted, recovering from the broad sector sell-off experienced on Thursday. Blue chips Antofagasta, Xstrata, ENRC, Rio Tinto, BHP Billiton and Randgold Resources were among the big gainers.

Rolls-Royce is a high riser after it secured – along with Daimler – full control of German diesel engine-maker Tognum. The two companies want to take over Tognum to create a joint venture that will be a “leading industrial engine systems and solutions provider.

Meanwhile, the banking sector is unwanted on Friday, after a report from the Bank of England’s Financial Stability Report warned of continuing sovereign and banking risks. Lloyds Banking Group, Royal Bank of Scotland and Barclays are among the worst performers.

Asset management firm Schroders is under the weather after Credit Suisse reduced its forecasts for the group, given the decline in equity markets in the last month. A ‘neutral’ stance is maintained, while the target price is scaled back to 1,600p, from 1,700p.

THE FTSE 100 Closed                                  Up 23          @    5697

THE DOW JONES @ 16.45                                Down 92          @   11,958

THE NASDAQ COMP @ 16.45                           Down 18          @  2668

Exchange Rates

GBP – USD     @ 16.45          1.5997 GBP - EURO    @ 16.45          1.1269