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Tuesday, June 24, 2008 Moring Update

The FTSE is currently indicating a higher open, as traders are waiting for the release of the BBA loans number. While not the most important of the economic releases, this number helps us see the risk tolerance that banks in UK are willing to take. With the end interest rate cuts in UK a given, banks will think twice to agree to loan money at a fixed rate, while their cost of borrowing goes up. Financials are going to be the focus of all the attention while waiting for the FOMC decision across the ocean.

The rise in output of oil in Saudi Arabia was wiped out by the attacks in Nigeria, helping the price per barrel rise over the 136 dollar mark. This could weigh heavily on the Consumer Confidence which is due to be released today at 14.00GMT. Consumers have been hit on every possible side, with no relief in sight, while the US consumers were given a stimulus package, not many of them spent it as predicted. Most recipients used the extra 600$ to pay for food or catch up on delinquent bills.