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Wednesday, July 23, 2008

BetOnMarkets Morning Update

The FTSE is currently indicating a sharply higher opening as traders are hoping that the minutes from the last BOE meeting will show that there will not be a rate hike in the near future. Interest rate hikes hurt equities, and if the minutes come out dovish we see the FTSE possibly adding more then 100 points today.

Commodities were again on the losing side of things, mainly due to the strength of the US dollar. All the attention will be focused on oil, especially towards the end of the day, when the US Department of Energy will be releasing its inventory numbers. There is a risk that US consumers have been really cutting back on oil purchases, and if the inventory number is higher then expected, a selloff in the price of oil will follow.