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Thursday, July 17, 2008

BetOnMarkets Morning Update - 18/07/08

The FTSE is currently indicating a flat opening, with traders are weighing in cheaper oil versus another round of the credit crisis. Some investors are awaiting the release of the UK Public borrowing numbers. Traders will be able to see if the government is trying to improve the economy by increasing spending.

Oil is trading below 132 dollars per barrel, however the cheap oil seems to be short lived. Crude oil got a push higher when Nigeria had its oil production disrupted due to pressure failure. We think that oil will finish the week on a high note, probably just north of the 135 dollar level. Gold went through another beating yesterday, after a combination of the strong dollar and a rally in the US equities. We believe this is just a correction, and gold will rebound as US strength will wane in the coming days.