RAMSEY CROOKALL & CO

EVENING REPORT 20th January 2011

The leading index finished down more than 100 points as hefty losses in the mining sector continue to damage sentiment.

The top share index has fallen below 5,900 points for the first time this year as the impact of snow casts a shadow over a raft of trading updates and strong growth in China stokes speculation of fiscal tightening.

China’s economy grew by 10.3% in 2010, ahead of expectations after a strong final quarter. Analysts had been predicting a 10.2% increase, but strong industrial production and retail sales in the final quarter brought about a bigger-than-expected 9.8% annualised rate of growth in the final quarter.

Elswhere, EasyJet was a victim of the weather. The budget airline said bad weather and strike action towards the end of last year cost it a total of £31m.

Power systems developer Rolls-Royce bagged a $250m long term maintenance support contract from Cathay Pacific airline. Rolls-Royce will provide its TotalCare long-term services support programme for Trent 700 engines that power eight new Airbus A330 aircraft. An enhanced engine refurbishment programme for RB211-524 engines that power existing Boeing 747-400 aircraft will also be delivered up to 2013.

Finally, shares in Laura Ashley jumped after the extreme winter weather and consumer nervousness failed to prevent the ladies fashion and home furnishings group having a good Christmas. The company said it had performed better than anticipated since its trading update on 16 December and now expects full year profits to be “significantly higher than earlier expectations.”

THE FTSE 100 CLOSED DOWN 108 @ 5867

THE DOW JONES AT 4.30 IS DOWN 59 @ 11,766

THE NASDAQ COMP AT 4.30 IS DOWN 31 @ 2693

Exchange Rates

GBP – USD 1.58 GBP - EURO 1.18 ??

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