BetOnMarkets Morning Report

The FTSE is indicating a lower opening, as traders await to see the release of the EU employment data. While its not UK data, with the EU being a huge trading partner, a slowdown there could mean harder times for the UK. The way the FTSE opens today is totally dependant on that report.

Oil is on the weaker side of things again, as concerns that OPEC will not cut enough production to offset lower demand has traders dumping the futures contract. Crude oil is trading down 63% since its all time high reached on July 11th. Oil prices will be fluctuating wildly today as traders position themselves before the OPEC announcement.

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BetOnMarkets Morning Report

With US markets closed for thanksgiving, European equities are enjoying a relatively quiet session. In fact, the FTSE 100 is currently trading within its tightest range since the end of September. Credit markets are continuing to unfreeze and the VIX Volatility index yesterday closed below its 50 period moving average for the first time since the start of September. Implied volatility levels remain high but at least there are signs of calm creeping into equity markets.

Recent events in India have so far failed to have too much of an impact of equities, with most European stocks moving little after this mornings opening flurry. It is worth noting the muted reaction in gold prices at this time. Gold is traditionally seen as a safe haven in troubled times, yet despite the traumatic events in India Gold has barely moved at all over the last couple of days. With the implied risk of world governments defaulting on their bonds increasing, one would also have expected gold prices to increase as investors seek out safe havens for their assets. There are many factors affecting the price of gold, not least the strength of the dollar, but perhaps today’s lack of reaction is another indicator that volatility is set to decrease further as we approach the last month of a tumultuous year. Just last week, 2008 was set to be the worst year on record for many markets. Although this year will undoubtedly go down in the history books no matter what happens from here, there is a chance that it won’t end as it began.

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BetOnMarkets Morning Report

The FTSE is currently indicating a slightly stronger opening, as traders are finally able to take their eyes off the US markets for the next couple of days and just focus on UK fundamentals. Based on GDP news released yesterday, UK is entering a recession and analysts are looking to the government on hints of a how they plan to get the British economy back on track. There is a very strong chance that the FTSE will experience a low volume day.

Oil falls weaker this morning, as concerns over lower demand intensify. OPEC has yet to react, but is rumored to cut production again at next months meeting. The only question is, will they cut enough to actually make a difference? Most analysts are betting that they will not. With that being said, look for oil to trade in a tight range today due to the American Thanksgiving.

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BetOnMarkets Afternoon Report

Despite a raft of dire US economic announcements, global markets have managed to put some distance between the day’s lows and current levels. This in itself is an encouraging sign, as markets could have easily taken today’s US durable goods figures and PMI numbers as a cue to sell off significantly. The FTSE and most other European markets are certainly down on the day, but the falls are nothing compared to the all out capitulation we’ve seen of late. US markets are mixed with the Dow down by roughly the same margin that the tech heavy Nasdaq is up.

UK oil stocks were amongst the heaviest fallers this morning, but have since recovered from the lows as crude oil prices rally slightly from $50. It is hoped that the announced Chinese interest rate cut will restart the Chinese economy, which was the biggest driver of the oil boom in recent years.

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BetOnMarkets Morning Report

The FTSE is currently indicating a slightly weaker opening, while traders wait for the release of the of the UK GDP numbers. After seeing the US economy officially enter a recession, yesterdays traders worry if UK is the next major country to follow. Most analysts are expecting exactly that. Unless there is an upside surprise, the FTSE is most likely to spend the day in the red.

Oil was hurt yesterday as worries about a slowing economy were renewed when data showed that the United States officially entered a recession. Today, around London close, we will receive the weekly inventory data, which will determine the next short term direction for oil.

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