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Wednesday, July 2, 2008

BetOnMarkets Morning Update - 03/07/08

The FTSE is currently indicating a sharply lower opening, following in the footsteps of the Asian markets, which are down more then 1% in morning trade. Record oil, more downgrades in the financial sector expect to weight heavily on the FTSE when it opens. We expect the market to be light until 12.30PM GMT, when US will release its employment data, which will set the tone for the rest of the day. We expect losses which will be heavier then expected by analyst, looking for a number around the 100 thousand jobs lost in June.

Oil hit another record, as investors are now using oil as a hedge against the US dollar. With the EU rumoured to increase its benchmark interest rate today, which would strengthen the Euro versus the dollar, more and more traders are buying oil contracts as a double bet. Benefit from the increasing price of oil, and the weakening US dollar, in which the oil contract trades. We believe that oil will touch 150 before the end of July.