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Monday, July 21, 2008

BetOnMarkets Afternoon Update

Thanks primarily to the financial sector, stock markets around the world are building on the rally from the second half of last week. It is interesting to note that the stocks leading the rally are those that were beaten up the most as market’s plunged to their recent lows. In the UK, Barclays and RBS in particular are performing well today as sentiment reverses on the battered banking sector. After Bank of America’s earning’s came in better than expected, other US financials are pushing higher. Freddie Mac, Fannie Mae and Lehman Bothers have risen 74%, 89% and 46% respectively since the lows on the 15th of this month.

While this rebound was perhaps overdue, the case for further rallies of this magnitude is a little weaker. We will have more of a clue this evening with earnings announcements from American Express, Apple and Texas Instruments after the US closing bell.