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Tuesday, July 15, 2008

BetOnMarkets Morning Update - 15/07/08

The FTSE is currently indicating a weaker opening while traders await the release of the Consumer Price Index numbers for the month of June. While only a gain of 0.4% is expected, higher then normal oil prices will push this number higher. A higher then expected CPI number will result in a very weak open for the FTSE, as the BOE will have its hand forced into raising interest rates at its next meeting. Couple this with the on going worry over the state of the financial system, and we are in for a very rocky trading day.

Commodities enjoyed and very profitable trading day, as oil is benefiting from a strike in Brazil, and tension in the Middle East. All of this has added to 145 dollars per barrel of oil. Gold is also benefiting from the tension in the Middle East, and traders are buying gold to hedge against the US dollar. Some worry that US will be brought in to another war which will put pressure on the greenback.