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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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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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The FTSE currently indicates a flat opening, as traders await the release of the UK Industrial and Manufacturing production numbers. While analysts expect flat growth for the month of July, we feel that the number is a little optimistic resulting in the market possibly opening lower this morning.
 
Oil prices are trading lower, as another hurricane is slated to miss the key oil producing fields. Adding to the lower oil price is the resurgence in the strength of the US dollar, which traded at an 11 month high versus the Euro. We might see the Euro trade as low as 1.35 per US dollar this month.

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The FTSE currently indicates a flat opening as traders wait to see what the Bank of England decides before putting money into the equities market. The BOE finds it self again at a cross roads, trying to decide which fire is more dangerous, inflation or an economy on the brink of a recession. I would not want to have that job today.

Oil finally broke below the 200 day moving average and is technically in a free fall until the 100 dollar per barrel mark. Due to the shortened week in US, the inventory numbers will be released today instead of Wednesday, this release should have a significant effect on the price of oil today. Gold keeps trading lower as renewed optimism regarding the US economy has traders selling gold and buying the US dollar. Look for the very important employment figures today around lunch, which will give you a hint regarding tomorrows all important employment rate for US. Strong numbers could possibly send gold below 800 dollars per ounce.

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The FTSE is currently indicating a higher opening as traders await the release of the UK purchasing managers' survey. While this is not a major economic report, the purchasing managers survey will allow us to get an in-depth look into how the major corporations are viewing the economy and if they plan to make major investments. Should this number come out better then expected, look for the FTSE to get a healthy boost.

The hopes of oil traders, who were holding long contracts into the weekend, were shattered when Hurricane Gustav was downgraded to a category level 2 causing oil prices to fall 4 dollars per barrel. However, not all is lost as we will be getting reports of the actual damage when the evacuated employees return. Not to mention that Hurricane Hanna is around the corner.

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