BetOnMarkets.com Morning Update

The FTSE is currently indicating a higher open, as traders are coming back from their weekend.

Lower then expected Rightmove house prices could not depress the market, as bad as the Monday blues will. While there is no more economic news out of UK until Tuesday, the FTSE is likely follow the
Nikkei with a negative trading tone.

Oil is trading near the 135 dollars per barrel, as a mix of events over the weekend has resulted in higher prices. While the expected increase in output from Saudi Arabia was already priced in, the attacks on the Chevron pumping stations in Nigeria will cost the world supply almost all of that gain. Gold has been a winner all week, as the weak dollar theme pushed the precious metal back above the 900 level. We believe that gold will continue its rise until the FOMC meeting on Wednesday. While there is no rate cut expected, traders are interested in the language which will come out with the decision. They will be looking for clues if an interest rate increase is in the cards for later in the year.

BetOnMarkets.com Morning Update

The FTSE is currently indicating a higher open as UK and the European markets are following in the steps of the North American equity markets higher close. Friday is an economically quiet day in UK, however there is some European Union news to keep an eye on. At 6am GMT the German inflation will be released, as one of the biggest economies in the EU, this will influence the trading mood in Europe, and UK. On an off note, today is triple witching Friday, when most hedge fund traders roll over their positions to the next month, this tends to be an equity positive move.

Oil fell for the second day in a row dipping below 132 dollars per barrel. Slow down in the economy around the world, and an increase in output in Saudi Arabia is lowering the risk premium which is priced in the cost of every barrel. Gold was a winner again yesterday, and is being pushed higher, again on the back of a weak US dollar. Since there is no economic news out of US today, its a safe bet that the weak dollar theme will continue into the weekend. Gold could finish the week higher then 905 dollars per ounce.

BetOnMarkets.com Morning Update

The FTSE is currently indicating a flat open, as everyone is waiting for the release of the UK retail sales. Consumers are going through a rough time, with high oil prices and falling home values there is not much left for the customer to tap into to keep up with their spending habits. Sadly the Bank of England has announced that they will tolerate the lower standard of living UK citizens will go through while Mervyn King tries to reign in the number one problem: inflation. A strong Retail Sales number will help the FTSE stocks into positive gains.

Dollar weakness has given new life to the precious metal market, as gold has bounced from the 870 area now trading near the 900 dollar level. While the outlook on the US dollar has not changed, more and more traders are forgetting the threat that Mr. Bernanke made a few weeks back regarding a strong dollar intervention which spooked the FX market.

BetOnMarkets.com Morning Update

The FTSE is currently indicating a lower open, as traders are awaiting the release of the Bank of England minutes from its last meeting. After seeing any hopes for a rate cut dashed yesterday, everyone will be interested to see if there is any indication of a rate hike for the next meeting. While a rate hike would be welcomed by the GBP/USD, it would be a punch in the gut to the FTSE, which already has been dealing with record oil prices and a squeeze in the credit markets.

Oil continues its losing way, bringing the count to four consecutive trading days. The main culprit is the slow down in economic growth, which translates into lower demand for the black gold. Helping push the price lower is the rumoured increase in output by the worlds largest oil producer Saudi Arabia. There may be a glut of oil in US, as slowing demand and increasing output will result in a fall for the price per barrel.

Morning Update

The FTSE is currently indicating a flat open, while traders are awaiting the release of UK inflation numbers. After yesterdays stronger then expected CPI numbers in EU, traders are expecting the same results in Britain. This would put the end for any hope of an interest rate cut; in fact some say that it would pressure the BOE to increase rates at the next meeting. We believe that the FTSE will open in negative territory as the threat of an interest rate hike is negative news for equities. Not all is bad, as the rumour of the stronger then expected inflation numbers has boosted the Sterling Pound, from last weeks low of 1.9420 to 1.9675.

Oil was little changed yesterday, and will probably stay that way until the next report out of the US, which is due out Wednesday. Everyone is expecting a build-up in reserves as more and more consumers are moving away from driving big cars, and some are switching to bikes. Gold is back on track, mostly on the weakness of the US dollar, we expect the precious metal to continue its momentum higher as yesterdays US strength was over done.