RAMSEY CROOKALL & CO MORNING REPORT

31 December 2010

The FTSE 100 moved into the red as mining stocks decline. Rio Tinto was down 1.3% and BHP Billiton down 1%. Moves either way are being exaggerated by very light volumes, traders say. Overall, though, the index has been pretty much hovering over the flat line since the open and is expected to continue to do so, with many traders away from their desks, and those who are in happy to sit on their hands until the New Year.

U.K. house prices posted a surprise monthly increase at the end of 2010, a first since May, highlighting that the current downturn in property market is only a modest one, the Nationwide Building Society said Friday. House prices rose against expectations in December. Nationwide said the average price of a home rose by 0.4%, following a 0.3% drop the previous month.

Supermarket retailers remain on the front foot, with Sainsbury up 1.3% and Morrison up 1.2%. The London market is due to close at 1230 GMT.

In other  news, Sahara India Pariwar said it has acquired the iconic Grosvenor House hotel in London from The Royal Bank of Scotland Group PLC.

THE FTSE 100 AT 10.00 IS DOWN 16 @ 5954

THE DOW JONES CLOSED DOWN 15 @ 11,569

THE NASDAQ COMP CLOSED DOWN 1 @ 2662

Exchange Rates

GBP – USD 1.54 GBP – EUR 1.15