RAMSEY CROOKALL & CO

EVENING REPORT

1 NOVEMBER 2010

The FTSE 100 pulled out of its late morning slump over the lunch time session to move firmly back into positive territory, though investors were still reluctant to commit too heavily ahead of tomorrow’s mid-term US elections, and the quantitative easing decisions expected this week from the Bank of England and the US Federal Reserve.

An attempt by outsourcing company Serco to lean on its suppliers and ask them for a voluntary contribution towards Serco’s commitment to the government’s cost cutting efforts has backfired most spectacularly.

Banks were higher as trading updates loomed. Lloyds Banking Group got ready for tomorrow’s statement with a 2% jump, while Royal Bank of Scotland and HSBC also made up ground ahead of Friday’s releases.

Miners were also wanted, helped by strong manufacturing data from China. Rising metal prices have lifted Kazakhmys, Xstrata, Antofagasta, Lonmin and Rio Tinto closed up 44p at £40.80 onto the blue chip leader board.

Smiths Group was higher with hopes the latest Al Qaeda bomb threat will increase demand for its cargo-scanning equipment.

Finally, BG Group, the oil and gas giant due to declare third quarter results this week, is to get cracking on its Queensland Curtis Liquefied Natural Gas (QCLNG) project after receiving government clearance. BG Group closed down 5p at £12.10

THE FTSE 100 CLOSED UP 19 @ 5694

THE DOW JONES AT 4.30 IS UP 56 @ 11,175 THE NASDAQ COMP AT 4.30 IS UP 5 @ 2512

Exchange Rates

GBP – USD 1. 6033

GBP – EUR 1. 155

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