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BetOnMarkets Afternoon report

Discussion in 'Market Predictions and Reports' started by Erik, Apr 3, 2009.

  1. Erik

    Erik BetOnMarkets Representative

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    Please find below the Afternoon Report from David Evans, market analyst
    at BetOnMarkets.com

    Equity markets look set to end what has generally been a positive week
    with a whimper. US markets are down around 1%, which in the context of
    recent volatility is really not much to write home about. Recently, US
    markets have had an average trading range of 2% per day, which is
    actually down on the recent peak of 4% per day on average. In volatility
    terms, things seem to be quietening and this is usually a positive for
    equities which loath the unknown more than bad news. When the economic
    data becomes more predictable, markets can move to price in bad news, as
    appears to have happened today.

    Although markets are down today, the sell off is not what one would
    automatically expect from the release of the highest US unemployment
    numbers for 25 years. Wednesday's ADP job numbers gave traders a
    reasonable steer on today's data so traders weren't entirely shocked by
    the announcement. Today's job numbers were very weak though, there's no
    getting away from that. What is most concerning is acceleration in
    unemployment. Anecdotally many people across the world have been saying
    the saying the same thing --the shocking thing about this global
    recession is how quickly things have developed to point of near
    depression levels. In the US 5.1 million jobs have been lost since the
    recession started, but two thirds of these happened in the last 5
    months. It would seem that this has been a similar pattern across the
    world. With yesterday's agreement from the G20 to inject huge sums of
    cash into the global economy, world governments are hoping to stem the
    speed of the collapse at the very least.

    On currency markets today, the pound has been one of the strongest
    currencies, pushing higher against the euro and the dollar despite data
    from the Halifax which stated that house prices actually dropped last
    month.

    RBS and Barclays are helping push financials higher today while
    defensive stocks such as Astrazeneca, Tesco and Sainsburys are out of
    favour a bearing the brunt of the selling.


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