The FTSE is currently indicating a flat opening, as traders wait for the release of the BBA mortgage loans number. While the Bank of England can cut interest rates, as long as banks are not lending money to credit starved business and consumers the economy is going to struggle. Should the loan number be better then expected look for the retail and manufacturing stocks to get a nice boost.
Crude oil fell from a two-week high on speculation recession in the world's largest economies will curtail demand for fuel and energy. A report later this week will probably show the U.S. economy shrank 5.5 percent in the fourth-quarter, the fastest pace in 26 years. White House officials are working to get President Barack Obama's $825 billion stimulus package approved by mid-February to create or save as many as 4 million jobs.
Oil prices will likely spend most of the week near the 40 dollars per barrel level.
Predicted opens as of 06:00 GMT
FTSE: 4053.0 (+8.2)
CAC40 2849.70 (+6.20)
DAX30 4173.80 (-7.0)
DOW: 7987 (-77)
SP500 821.60 (-4.63)
Gold: 891.40 (-1.03)
Oil: 45.73 (-0.48)
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