RAMSEY CROOKALL

23rd  June 2011

Evening Report

The FTSE 100 closed down 1.7%, as a series of poor economic data pummels markets, Thursday. Banks lead the declines on continuing concerns regarding the Greek debt crisis and as an EU summit gets underway. At the same time basic resources stocks nosedive following disappointing Chinese PMI data. On top of this US initial jobless claims disappointed and the FOMC's statement on the US economy Wednesday also weighed.

Just five stocks made gains, British Sky Broadcasting being the highest riser. Rupert Murdoch’s Newspaper group News Corp’s takeover of the satellite broadcaster has moved closer after the regulator Ofcom rubber-stamped the deal. It is now up to culture secretary Jeremy Hunt to review the proposal. He is expected to give it the green light next week.

Meanwhile, RBS and Lloyds were unwanted on reports that the government may be giving shares in the part-nationalised banks back to taxpayers.

Catering giant Compass Group closed lower after announcing that it is acquiring Shing Hin Catering Group from Au-Yeung Kwan for an undisclosed sum, strengthening its existing food services business in Hong Kong. Military decoy flare and mine detection firm Chemring fell even after it managed to post a sharp rise in sales and profits in the half-year to 30 April despite constraints on military spending in Britain and the US. Revenues climbed by 29% from the previous year to £329.8m, while underlying pre-tax profits were up by 17% at £49.6m.

THE FTSE 100 closed       Down 98 @ 5674       

THE DOW JONES at 4:45                     Down            190   @    11919

THE NASDAQ COMP at 4:45              Down             23   @    2645

  Exchange Rates GBP – USD           1.5979 GBP - EURO          1.1281