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Tuesday, July 1, 2008

BetOnMarkets Morning Update

The FTSE is currently indicating a slightly weaker open, while traders are awaiting the release of the Manufacturing Purchasing index. There has been a lot of ink spent discussing the state of the UK economy, and a slowdown in the manufacturing area would cause some concern to the BOE who are currently battling inflation and hinted at rising interest rates at the next meeting. We believe that the Purchasing number will be weaker then expected and would cause the FTSE to open sharply lower.

Oil spent most of the day trading north of the 140 level. Demand from Asian countries is expected to outpace declines in the U.S. as a result we will not be getting relief anytime soon. Gold spent most of the day battling profit taking after gaining more then 3 percent last week. We believe that gold will continue its upward trend this week, as traders are betting that the US employment number , which are released on Thursday, will come out worse then many expect.