1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.

BetOnMarkets Morning Update

Discussion in 'Market Predictions and Reports' started by Erik, Jul 25, 2008.

  1. Erik

    Erik BetOnMarkets Representative

    Joined:
    Jul 23, 2008
    Messages:
    0
    Likes Received:
    0
    BetOnMarkets Morning Report

    The FTSE currently indicates a slightly higher opening, after the Bank of England, the EBC and FOMC all cut their lending interest rates yesterday. Rumors are circulating that because the BOEs next meeting is not scheduled until November, there might be another rate cut soon.
    There is a strong chance that the FTSE will end up in the red at some point during todays trading day.

    Oil fell for a second day as the global economic crisis curbed demand also hurting the price of oil was the U.S. government report of a bigger-than-expected gain in crude and gasoline inventories. With the strengthening of the US dollar, there is a good chance that oil prices will test the 85 dollars per barrel mark before the end of the week.

    BetOnMarkets
     
  2. Erik

    Erik BetOnMarkets Representative

    Joined:
    Jul 23, 2008
    Messages:
    0
    Likes Received:
    0
    BetOnMarkets Morning Report

    The FTSE currently indicates a very weak opening and is poised to have the worse week since 1987. The London index was closed when the major sell off started in U.S., forcing the Dow Jones to its lowest close in more then 5 years. However the sell off continued in Asia, with all markets suffering equal losses. Currently futures are indicating for a 8% loss, we might see the FTSE touch double digit losses unless there is government intervention, which is very possible.

    Oil fell for a third day as demand dropped and global stock markets plunged on concern that the global credit crisis will push countries including the U.S. into a recession. Gold which has been historically the investment of choice during uncertain times, has climbed past the 900 dollar per ounce mark and it seems like it will touch the 1000 dollar mark before the end of the month.

    BetOnMarkets
     
  3. Erik

    Erik BetOnMarkets Representative

    Joined:
    Jul 23, 2008
    Messages:
    0
    Likes Received:
    0
    BetOnMarkets Morning Report

    The FTSE currently indicates a very strong open as traders disseminate the events of the weekend. Following the trend started in Britain, EU will pump billions of dollars to stabilize the EU banks in exchange for shares in the companies. The futures are indicating that traders are excited about this turn of events. The European equity markets are indicating opening the trading week up more then 5%.

    Oil prices rose from their 13 months lows, on the news of the European bailout. Many analysts speculate that the action by European leaders to prevent the regions major lenders from collapsing, may help slow credit market turmoil that threatens to stall the global economy. Currently oil is trading at around the 80 dollar mark, however there is a strong chance that the price per barrel will end up in the low 70s before stabilizing.

    BetOnMarkets
     
  4. Erik

    Erik BetOnMarkets Representative

    Joined:
    Jul 23, 2008
    Messages:
    0
    Likes Received:
    0
    BetOnMarkets Morning Report

    The FTSE currently indicates a lower opening, brining the 2 day rally to an end. While some investors might attribute the lower opening to profit taking, others are worried that the sagging corporate profits will overshadow the bailout. Currently the FTSE is indicating an opening down by 2 percent.

    Oil has tracked movements in equity markets this month, as the credit crisis deepened. Oil traders will have a full plate tomorrow as they await the release of the inventory supplies data. There is a strong possibility that oil will touch the 75 dollar per barrel level before stabilizing.

    BetOnMarkets
     
  5. Erik

    Erik BetOnMarkets Representative

    Joined:
    Jul 23, 2008
    Messages:
    0
    Likes Received:
    0
    BetOnMarkets Morning Report

    Consumer confidence regarding the health of the economy is about to be rattled again, as the FTSE is indicating a very weak opening. The slump that started in US, where the SP500 suffered its worst one day loss since 1987 has continued the sell off into Asia and will move into Europe and UK as the FTSE is indicating an open down more then 4 percent.

    Oil seemed to strengthen in the morning before the weakness in the equities market sent oil prices down by more then 6 dollars per barrel. Due to a holiday on Monday, the US oil inventory numbers will be released this afternoon, which should provide some fundamental direction to the black gold, which lately has been caught in a cross fire between equity weakness and US dollar strength. We do not expect for the price of oil to dip below 70 dollars a barrel.

    BetOnMarkets
     
  6. Erik

    Erik BetOnMarkets Representative

    Joined:
    Jul 23, 2008
    Messages:
    0
    Likes Received:
    0
    BetOnMarkets Morning Report

    The FTSE currently indicates a higher opening, as traders, after some initial skepticism, are finally buying into the bailout plan. Although there is no UK economic data today, traders will be looking at the US housing and consumer confidence data. A worse then expected consumer confidence number can send both the US equities and the FTSE into the red.

    The threat of an OPEC cut at its meeting next week has lifted oil from a 13 month low. Oil which is currently trading around the 73 dollars per barrel mark, has been in a tailspin as worries of a full fledge recession intensifies. We believe that oil prices have hit their lowest and could only go higher from here.

    BetOnMarkets
     
  7. Erik

    Erik BetOnMarkets Representative

    Joined:
    Jul 23, 2008
    Messages:
    0
    Likes Received:
    0
    BetOnMarkets Morning Report

    The FTSE is currently indicating a flat opening, as traders wait for the release of the UK Rightmove House Prices. A weak number might send the FTSE into the red. Money managers around the world are hoping that the volatility, which plagued the stock markets last week, has come to an end. Currently futures indicate a flat opening to all European equity markets and the FTSE.

    Oil rose for a second day, on speculation OPEC will cut output in an attempt to halt a slide in prices, which have fallen more than 50 percent from July's record. The OPEC meeting will be held on the 24th of October. With a possible floor in place for oil prices, we might see a test of the 80 dollars per barrel level as we get closer to the meeting.

    BetOnMarkets
     
  8. Erik

    Erik BetOnMarkets Representative

    Joined:
    Jul 23, 2008
    Messages:
    0
    Likes Received:
    0
    BetOnMarkets Morning Report

    The FTSE currently indicates a weaker opening this morning, as the sell off which started in US last night continues. Traders find themselves caught in a struggle, with both sides afraid of taking charge. The Bears are worried that another intervention will cause a short squeeze, while the Bulls are concerned that stocks have a lot more room to fall. It is possible that the FTSE might get a boost before the opening, as traders await the release of the UK retail sales numbers.

    Oil currently finds itself trading at a 16 month low, after the US inventory report showed that the demand for oil is down by almost 10 percent for the year. Analysts are now estimating that OPEC would need to cut its output by more then 1 million barrels per day in order to reverse the recent losses. We believe that oil might actually touch 60 dollars per barrel before the end of the month.

    BetOnMarkets
     
  9. Erik

    Erik BetOnMarkets Representative

    Joined:
    Jul 23, 2008
    Messages:
    0
    Likes Received:
    0
    BetOnMarkets Morning Report

    The FTSE is currently indicating a lower opening, as traders are hedging their bets ahead of the release of the UK GDP numbers. Rumors are flying that the GDP will come out negative, putting more pressure on the UK government to help out the economy. This week we already saw that the British government is running the biggest deficit since World War 2, making it harder for Gordon Brown to spend his way out of a recession like the US government is trying to do. It is likely that the FTSE will spend the day in negative territory.

    All eyes will be on the OPEC announcement, as it is obvious that a production cut is coming. The million dollar question will be, how much? Analysts are looking for a cut of more than 2 million barrels, some are even predicting for 3 million. All of this will assure one thing, for a very volatile trading day! If OPEC cuts less than the expected 2 million barrels, we might see prices dip below 60 dollars per barrel.

    BetOnMarkets
     
  10. Erik

    Erik BetOnMarkets Representative

    Joined:
    Jul 23, 2008
    Messages:
    0
    Likes Received:
    0
    BetOnMarkets Morning Report

    The FTSE currently indicates a lower opening, following the theme started in Asia. Traders are going through the recent report from Gordon Brown, in which the Prime Minister announced that he will increase Britains spending in order to cushion the countries first recession since 1992. While this is good news for equities, the FTSE is going to open in the red due to the sell off which started in Australia this morning.

    Crude oil is trading at a 16 month low amid expectations that OPECs decision to cut production was not enough to get prices back to the summer levels. Gold traders have been frustrated lately, as gold prices have dropped by more then 150 dollars per ounce, as a result of a strengthening US dollar. There is a strong indication that oil might touch 60 dollars per barrel before putting a halt to the recent slide.

    BetOnMarkets
     

Share This Page