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Thursday, October 23, 2008

BetOnMarkets Morning Report

The FTSE currently indicates a weaker opening this morning, as the sell off which started in US last night continues. Traders find themselves caught in a struggle, with both sides afraid of taking charge. The Bears are worried that another intervention will cause a short squeeze, while the Bulls are concerned that stocks have a lot more room to fall. It is possible that the FTSE might get a boost before the opening, as traders await the release of the UK retail sales numbers.

Oil currently finds itself trading at a 16 month low, after the US inventory report showed that the demand for oil is down by almost 10 percent for the year. Analysts are now estimating that OPEC would need to cut its output by more then 1 million barrels per day in order to reverse the recent losses. We believe that oil might actually touch 60 dollars per barrel before the end of the month.