RAMSEY CROOKALL & CO

MORNING REPORT 30 December 2010

FTSE 100 traded down this morning, moving into the red and falling back below the much-watched 6000 level amid thin holiday trading. Very light volumes are exaggerating moves in either direction.

On the economic calendar, US jobless claims come at 1330 GMT and pending home sales at 1500 GMT.

Most mining stocks gave up earlier gains and now trade lower. African Barrick Gold is down 1.8% and Randgold Resources down 1.7%, having been the two top risers in the previous session.

The U.S. Navy awarded multibillion-dollar contracts to Lockheed Martin and a unit of Australia's Austal, finalizing a revamped plan to buy two separate designs for a new class of warship known as the Littoral.

BERKELEY RESOURCES LTD, a uranium explorer, said its managing director has resigned and it hasn't been able to agree terms of a takeover bid with Russian steel giant Severstal JSC. Berkeley, which has a uranium project in Salamanca, Spain, said it is in fresh talks with Severstal about an alternative transaction but didn't give details.  The company said Managing Director Ian Stalker has resigned for personal reasons and will be replaced by Henry Horne, financial director, until a permanent successor is found.

THE FTSE 100 AT 10.00 IS DOWN 8 @ 5987

THE DOW JONES CLOSED UP 9 @ 11,585

THE NASDAQ COMP CLOSED UP 1 @ 2666

Exchange Rates

GBP – USD 1.55 GBP – EUR 1.17