The FTSE is currently indicating a lower opening, as traders are hedging their bets ahead of the release of the UK GDP numbers. Rumors are flying that the GDP will come out negative, putting more pressure on the UK government to help out the economy. This week we already saw that the British government is running the biggest deficit since World War 2, making it harder for Gordon Brown to spend his way out of a recession like the US government is trying to do. It is likely that the FTSE will spend the day in negative territory.
All eyes will be on the OPEC announcement, as it is obvious that a production cut is coming. The million dollar question will be, how much? Analysts are looking for a cut of more than 2 million barrels, some are even predicting for 3 million. All of this will assure one thing, for a very volatile trading day! If OPEC cuts less than the expected 2 million barrels, we might see prices dip below 60 dollars per barrel.
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