BetOnMarkets Morning Update

Erik

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BetOnMarkets Morning Report

The strong US dollar continues to cause havoc for the commodity sector. With gold now trading almost 300 dollars below its 52 week high, set in the spring. The main culprit for this sudden reversal is the strong US dollar, which has gained more then 15 cents versus the Euro. Look for the precious metals sector to continue to lose value as traders sell gold and invest in the all of a sudden strong US dollar.

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Erik

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BetOnMarkets - Hurricane Ike missed

The FTSE currently indicates a very weak opening. The take over of Merrill Lynch is probably a contributing factor. Over the weekend yet another takeover has been orchestrated by the US government, where a top four investment bank, is now the property of Bank of America. Look for a small recovery when trading starts this morning, however we are probably going to spend the rest of day in the red.

Oil traders did not get the boost they were hoping for. As Hurricane Ike missed taking out the important oil fields and oil futures are now trading below 100 dollars per barrel. We are anticipating that the price of crude will keep falling, even as OPEC cuts productions by half a million barrels per day.

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Erik

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BetOnMarkets Morning Report

The FTSE is currently indicating a flat opening, after economic data showed that UK house prices fell for the fourth month in a row. This negative news was like a punch in the gut for the FSA after their restriction on shorting, boosted the FTSE on Friday.

Crude oil got a boost in the last few hours of trading on Friday, closing just under 105 dollars per barrel. The move was mainly due to the weakness in the US dollar. Traders are worried that the latest bailout by the US government will have a negative effect on the greenback and can see the GBP/USD trading at 2.00 dollars per British Pound by Christmas.

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Erik

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BetOnMarkets Morning Report

The FTSE is currently indicates a flat opening as traders wait for the release of the European IFO numbers. While this is not UK data, it will affect the FTSE depending on how strong the number will be. After further research we believe the number will be stronger then expected. This should result in a higher opening for the FTSE.

Oil traders were at the mercy of the US dollar yesterday as the bailout bill was debated in congress. We expect the same today, with the added volatility of the inventory numbers to be released around 10.30 AM EST. It seems like the November contract is poised to break above the 110 dollars per barrel level.

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Erik

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BetOnMarkets Morning Report

FTSE is currently indicating a lower opening as traders prepare themselves for the unveiling of the bailout package. There is still way to many questions left unanswered in the fine print, which is why traders are divesting of stocks that might be affected negatively by this historic event. We expect the FTSE to spend the morning in negative territory.

Commodities, which are affected by the US dollar, have been range bound, while awaiting news about the bailout. Investors believe that this bailout will have a negative effect on the US dollar, which in turn may make commodities more expensive. If the bailout is finalized tomorrow, look for oil and gold to have a very volatile day.

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Erik

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BetOnMarkets Morning Report

The bloodbath that started yesterday in the United States is set to continue, as the FTSE futures indicate an opening down 5% from yesterdays closing. The SP500 suffered the worst one day loss since October 26th 1987, wiping out almost 800 billion dollars in market cap. While no stock was spared from the sell off as the Advance/Decline ratio on the NASDAQ was at -80. The financials led the way with most companies recording losses in the double digits. The sell off has continued in Asia with the major indices currently down more then 5%. Unless there is a miracle we expect for the FTSE to spend the whole day in the red.

As traders were selling their equity holdings, gold was a huge winner, climbing above the 900 dollars per ounce level. Historically whenever traders felt uncertain in the equities market they would invest in precious metals. We can see that trend to continue as uncertainty and chaos should rule the day. The possibility of a different version of a bailout is not dead and it could possibly slow down the sale off today.

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Erik

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BetOnMarkets Morning Report

The FTSE is currently indicating a higher opening, as rumors intensify that another bailout bill will be introduced in congress today. The rumor was the main reason for the huge recoveries that were enjoyed by equity markets around the world. This recovery was anticipated, as historically meltdowns on Wall Street often attracted bargain hunters. Not all the news yesterday was positive, as the credit market has shown no sign of relief despite the possible bailout rumors being circulated. A key rate that banks charge to lend to one another shot higher, a tightening of the availability of credit that could cascade through the economy. We expect the FTSE to spend most of the morning in positive territory.

Oil traders spent the last few days at the mercy of the rumors, however today it regained most of the 10 dollars per barrel it shed on Monday as rumors of the bailout bill being reintroduced broke out yesterday. Oil has spent the last few weeks in the range between 90 and 110 dollars per barrel and there is little to show that the trend will change anytime soon.

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Erik

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BetOnMarkets Morning Report

The FTSE is currently indicating a higher opening, as traders are awaiting the release of the nationwide house prices. Also helping the equity markets is the possible rate cut by the ECB today at 11.45 am GMT. An interest rate cut historically helps the equity markets and today should not be any different. The FTSE should spend most of the day in positive territory.

Commodities benefited from the passage of the rescue bill, with oil stabilizing around the 100 dollars per barrel mark. Oil prices are more volatile today than at any other time since the Gulf War in 1991. The last seven days were a perfect example of that as Oil futures plunged 9.8 percent on Sept. 29, the biggest drop in seven years, after Congress voted to reject the bank rescue plan. A week earlier a record 16 percent jump led regulators to say they were on the lookout for price manipulation. We expect for prices to stabilize before the employment report on Friday.

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Erik

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BetOnMarkets Morning Report

The FTSE is currently indicating a higher opening, as traders look through yesterdays wreckage for possible investment opportunities. The equities market might get another boost before the opening, as analysts expect that the UK industrial production numbers will come out better then expected. We are looking for a big pop at the open.

Commodities have been taken and beaten up, yet again, as traders keep buying the US dollar. Oil found itself trading below the 90 dollar per barrel level yesterday and it seems like the trend will continue lower until OPEC cuts output. The only winner yesterday was gold, which finds itself the investment of choice, while the equity markets flirts with disaster.

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Erik

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BetOnMarkets Morning Report

The FTSE currently indicates a really weak opening, which is being caused by the continuation of a sell-off, which started in US last night. Mr. Bernanke warned on Tuesday, that the financial crisis could prolong the difficulties the economy is facing. Wall Street appeared little comforted and focused on his downbeat assessment taking the SP500 to its lowest close in 5 years. Look for the FTSE to spend the whole day in negative territory.

Crude oil fell in New York, trading below $90 a barrel, as consumption weakens in the U.S. and other developed nations amid a worsening credit crisis that's restraining economic growth. We expect oil prices to trade in a range before the inventory numbers are released towards the end of the UK trading day. The price direction for the next few days will be determined by the inventory numbers.

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