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Monday, May 19, 2008

UK Financials were among the worst performing yesterday and this morning that trend is set to continue after US financials fell off sharply yesterday afternoon. Energy stocks should stem the extent of any selling on the FTSE after oil traded as high as 127 dollars per barrel in New York trade. Saudi Arabia has gone on record to announce that they will be increasing output by 300,000 barrels, however traders are skeptic if this will be enough to have any effect on the per barrel price. Currently the FTSE is indicated lower.

The British pound is up this morning, after some traders felt that yesterdays more then a penny drop was over done. The pound has been stuck in a range for the last few months as economic data from both UK and US has indicated a slow down for both economies. The only saving grace for the Sterling Pound is that the BOE is not cutting interest rates, like the US Federal Reserve has done over the last year.