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It feels like oil is in a free fall, after prices dropped to 126 dollars per barrel in late New York trading. Most traders are selling the black gold, after a slow down in demand was seen from the US consumer over Memorial weekend. It seems like the 4+ dollars per gallon has consumers saying no more. We are expecting oil to fall below 125 by the end of Friday.

The FTSE is currently indicating a slightly higher open, mostly on the strength of the Japanese markets. We are expecting a low volume trading day, as most of the important economic announcements were already released this week. The only thing of note is at 12.30 GMT when US releases its Personal Consumption numbers. There is risk that they will come in lighter then expected, this will result in a sell off on the US equity side.

Posted in Market News

Equity markets around the world, went through a ho hum trading session on Monday, while UK and the US were enjoying a holiday weekend. Over night OPEC announced that they will not be increasing their output, even after an attack on a Nigerian pipeline pushed oil prices north of 133 dollars per barrel again.

We are expecting a flat open from the FTSE, however the day will be full of surprises. While there is no economic news out of the UK this morning, there are plenty from the EU zone, and US when UK traders come back from lunch. If the US consumer confidence is below the expected number, the US dollar will take a dive, which will result in higher oil price as well as gold, which will boost the FTSE energy and mining sectors.

Posted in Market News