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Sunday, June 22, 2008 Morning Update

The FTSE is currently indicating a higher open, as traders are coming back from their weekend.

Lower then expected Rightmove house prices could not depress the market, as bad as the Monday blues will. While there is no more economic news out of UK until Tuesday, the FTSE is likely follow the
Nikkei with a negative trading tone.

Oil is trading near the 135 dollars per barrel, as a mix of events over the weekend has resulted in higher prices. While the expected increase in output from Saudi Arabia was already priced in, the attacks on the Chevron pumping stations in Nigeria will cost the world supply almost all of that gain. Gold has been a winner all week, as the weak dollar theme pushed the precious metal back above the 900 level. We believe that gold will continue its rise until the FOMC meeting on Wednesday. While there is no rate cut expected, traders are interested in the language which will come out with the decision. They will be looking for clues if an interest rate increase is in the cards for later in the year.