The FTSE is currently indicating a sharply lower open, as traders are betting that the UK GDP number will come out weaker then expected. Oil and inflation are being blamed for the slow down in the UK economy. While economists are expecting a modest 0.4% growth, we are betting that the growth will be smaller then that, some traders are actually expecting a contracting number.
Oil is currently trading at an all time high, however this will be short lived. In US congress passed a bill which would require the CFTC to implement position limits, or constraints on the size of the stake each speculative investor can own, and raising margin requirements. Increasing the margins paid by hedge funds, will be a negative move for all the commodities, as traders will move to higher yielding contracts.
BetOnMarkets.com
New Financial Website. Try it Now!
Posts
