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Monday, August 4, 2008

BetOnMarkets Morning Update

The FTSE is currently trading slightly lower as traders are waiting for the release of the Constructions Managers Purchasing Index. Analysts are expecting another decline, and some traders are expecting an even worse number. We expect the negative news to hit the market like a brick, pushing the FTSE lower while traders try to figure out what can the BOE do to help the British economy.

Gold was hit real hard when the US employment numbers came out better then expected, while the economy lost jobs for the 8th straight month, these negative news were already priced in, as a result gold actually was sold off on the strength of the US dollar. We expect for gold to be very volatile for the next few days as more economic news are released, which will give us a glimpse of the US economy, and what will the US Fed do next. Oil which has been trading down from its all time high set in July is being affected by the cut backs in the airline industry, we believe that oil will break through the 120 dollars per barrel mark this week.