RAMSEY CROOKALL & CO MIDDAY MARKET REPORT 17 JUNE 2010

London’s top stocks are posting decent gains as BP shares rally 7% following yesterday’s meeting with the US president.

BP has cancelled dividends for the rest of the year and agreed to a demand from US president Obama to put $20 billion in an escrow account to cover claims resulting from the oil spill in the Gulf of Mexico.

Banking shares are reacting positively to Chancellor George Osborne’s promise of a “new settlement between our banks and the rest of society” last night.

In his maiden Mansion House speech, Osborne announced he would abolish the Financial Services Authority and give new powers to the Bank of England to help it regulate the UK financial sector. Lloyds climb 2p to 58p.

Engineering firm WS Atkins reported a 5.9% drop in full year pre tax profits, but the fall was not as steep as feared. Pre tax profit came to ?96.6 million for the year to 31 March, down form ?102.7 million the year before.

Equipment rental group Ashtead saw underlying full year earning’s tumble but has seen some signs of improvement in the fourth quarter, especially in the US, where it makes the bulk of its money.

Luxury handbag maker Mulberry revealed a 22% rise in full year profit as consumers flocked to buy products from its Alexa handbag range.

THE FTSE 100 AT 12.42 IS UP 44 @ 5282

THE DOW JONES CLOSED UP 46 @ 10,409

THE NASDAQ COMP AT 4.30 IS UP 1 @ 2305

Exchange Rates

GBP – USD 1. 481

GBP – EUR 1. 196