RAMSEY CROOKALL & CO MORNING REPORT 21 JUNE 2010

News over the weekend that China will relax its currency’s peg to the dollar has sparked a rush into mining stocks. Rio Tinto, Vedanta and Xstrata shares opend 4% higher.

It’s hoped the decision will reinvigorate the Chinese economy. Far East markets have already responded, with Japan up 2.5% and Hong Kong nearly 3%.

BP is down 11p at 346p after stating the Gulf of Mexico spill has cost about $2 billion including $105 million of claims. It also confirmed that its 25% partner Anadarko Petroleum is refusing to accept responsibility for oil spill removal costs and damages.

BP plans to shore up its finances against the escalating clean up costs by raising around $50 billion and pursuing Anadarko, its main partner through the courts.

Property giant Hammerson has assumed full ownership of the Battery Retail Park in the Selly Oak part of Birmingham. Hammerson has bought the 75% interest in the retail park which it did not already own.

Among the mid caps, Domino Printing Sciences has more than doubled full year profits as customers regain confidence following the end of the recession, increasing volumes by 30%.

Balfour Beatty has been appointed preferred bidder for a Derby schools project under which 14 schools in the city will either be built or refurbished.

THE FTSE 100 AT 10.00 IS UP 59 @ 5309

THE DOW JONES CLOSED UP 16 @ 10,450

THE NASDAQ COMP CLOSED UP 2 @ 2309

Exchange Rates

GBP – USD 1. 486

GBP – EUR 1. 197