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

The FTSE is currently indicating a lower opening, as traders are deciphering the new aid package to be announced by Mr. Brown. The aid package is supposed to encourage hiring and counter rising unemployment amid the deepest recession in almost three decades. The FTSE will be very sensitive to the announcement, and hopefully will end Monday on a positive note.

Oil is extending last week's 12 percent drop, on concern production cuts by the Organization of Petroleum Exporting Countries will fail to counter a slump in demand. Prices should continue to tumble, as economic data continues to show a deteriorating economy and a slump in demand. Prices should stay around the 40 dollars per barrel level until the inventory numbers are released on Wednesday

Predicted opens as of 00:00 GMT

FTSE: 4422.9 (-35.1)
CAC: 3271.50 (-28.30)
DAX: 4730.2 (-59.3)
DOW: 8550 (-45)
S&P 500: 884.60 (-3.38)
Gold: 849.90 (-5.60)
Oil: 40.50 (-0.30)

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The aid package will have a significant effect on the market.

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

The FTSE is currently indicating a slightly lower opening, as traders have no UK economic data to help them move the market. In Europe on the other hand, traders will be all ears when the ECB announces its latest interest rate decision. Analysts are expecting a 50 basis point cut; however it would not surprise me if the ECB cut an extra 25 basis points to help stimulate the stagnant economy. An interest rate cut usually benefits the equity markets so look for a nice jump in the European markets today.

Oil tumbled yesterday after a government report showed slowing demand sent U.S. stockpiles soaring to a 16-month high. Fuel demand fell 6 percent, the largest one-week decline in almost five years, as the Federal Reserve reported the U.S. economy weakened further in the past month. Oil prices should stabilize around the 35 dollars per barrel level for the near term.


Predicted opens as of 06:00 GMT
FTSE: 4156.3 (-19.2)
CAC40 3030.50 (-18.80)
DAX30 4407.2 (-18.3)
DOW: 8154 (-43)
SP500 834.98 (-7.50)
Gold: 809.15 (-3.20)
Oil: 36.54 (-0.70)

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

The FTSE is currently indicating a higher opening, continuing a rally that started in this morning in Asia. While there is no UK economic news today, there will be plenty from the North American side of the ocean to keep things interesting. We will get a glimpse at the US inflation numbers with the release of the CPI report at 13.30GMT and consumer confidence at 15.00 GMT. The FTSE will more then likely close out the week on a positive note.

Oil is set for the biggest weekly decline in a month, after OPEC announced that demand will drop this year amid a global recession. The organization cut its global demand estimate by another 20,000 barrels per day. The March futures contract is trading at 43.21 per barrel, there is a chance that oil will end the day closer to the 40 dollar level.

Predicted opens as of 06:00 GMT
FTSE: 4183 (+71.2)
CAC40 3047.60 (+52.30)
DAX30 4413.7 (+89.2)
DOW: 8259 (+46)
SP500 847.73 (+4.50)
Gold: 819.75 (+1.45)
Oil: 43.19 (+7.78)

BetOnMarkets.com is the worlds leading fixed odds financial trading website. Since inception in 2000 it has processed over 15 million trades on financial indices, UK and US equities, gold and currencies. Over 130,000 clients have the ability to place trades from GBP1 to GBP25,000.

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

The FTSE is currently indicating a lower opening, as traders are preparing for the release of the UK Consumer Price Index. Everyone is hoping that the inflation index will show that the average consumer is now getting more bang for their buck, analysts are expecting a drop of 0.9%. Should the number come out better then expected, the FTSE should get a nice boost.

Oil prices fell yesterday as slowing world demand, reduced tension in the Middle East and settlement of Russia's gas dispute with Ukraine has reduced some risk of uncertainty from the market. Some analysts are talking about oil jumping back into the 65 dollars per barrel level later this year, mainly on reduced output by OPEC and other producing countries. In the mean time, oil is probably going to dip into the 38 dollars per barrel level.

Predicted opens as of 06:00 GMT
FTSE: 4096.7 (-12.80)
CAC40 2979.70 (-7.80)
DAX30 423.60 (-14.70)
DOW: 8191.00 (-38)
SP500 840.23 (-2.50)
Gold: 830.78 (-6.90)
Oil: 40.52 (-0.31)

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

After enjoying a bank holiday weekend away, US traders no doubt cursed their European cousins as they returned to their trading desks today. US equities sold off sharply at the open, partly as a function of the British banking crisis and partly due to renewed concerns over this week’s round of earnings reports. With major companies such as Apple, IBM, Google and Microsoft reporting this week, investors are concerned that analysts may not have been pessimistic enough with their earnings estimates.

Financials are once again dragging the FTSE down with all UK banks down on the day. The spectre of full nationalisation looms large over the likes of RBS and Lloyds and the prospect of this is weighing heavily on the beleaguered pound. Sterling is being shunned as traders speculate on the scale of the government’s eventual liability with regard to the banks. The Treasury has effectively admitted that it has no idea how much this will all cost UK tax payers eventually. This coupled with a rumoured downgrade to the sovereign credit rating of the UK government has pushed sterling down to below the 1.4000 against the dollar level. Perhaps the only thing stopping an all out collapse in the pound is the fact that the Eurozone and US economies are hardly a bed of roses themselves.

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Investors aren’t exactly leaping with abandon into banking shares today, but at least they are managing to bounce off their lows set in early morning trading. The finger of blame for the current collapse in banking shares is starting to point at the short sellers once again. John McFall, chairman of the Treasury committed wrote to the head of the FSA asking them to investigate anecdotal evidence that some hedge funds have been shorting stocks.

It is almost inevitable that the short sellers get the blame, they are after all a convenient target. However, it should be recognised that conventional investors selling their holdings in droves can have a greater effect on a share price. After nationalisation of railtrack and Northern Rock, investors could be forgiven for taking their cash and running at the faintest whiff of nationalisation for Barclays, RBS or Lloyds. While the short sellers may be playing a part, it is record losses, ongoing rumours and unquantifiable risks that rattle share prices the most.

With this regard, news that Obama’s team is getting down to business on the economic recovery plan has helped markets stabilise somewhat today.

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The FTSE is currently indicating a flat opening, as traders wait for the release of the BBA mortgage loans number. While the Bank of England can cut interest rates, as long as banks are not lending money to credit starved business and consumers the economy is going to struggle. Should the loan number be better then expected look for the retail and manufacturing stocks to get a nice boost.

Crude oil fell from a two-week high on speculation recession in the world's largest economies will curtail demand for fuel and energy. A report later this week will probably show the U.S. economy shrank 5.5 percent in the fourth-quarter, the fastest pace in 26 years. White House officials are working to get President Barack Obama's $825 billion stimulus package approved by mid-February to create or save as many as 4 million jobs.
Oil prices will likely spend most of the week near the 40 dollars per barrel level.

Predicted opens as of 06:00 GMT
FTSE: 4053.0 (+8.2)
CAC40 2849.70 (+6.20)
DAX30 4173.80 (-7.0)
DOW: 7987 (-77)
SP500 821.60 (-4.63)
Gold: 891.40 (-1.03)
Oil: 45.73 (-0.48)

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Financials are still enjoying some follow on buying, but gains have been trimmed from earlier in the day. The main culprit for today’s fall in the FTSE, for once isn’t the banks, but the energy sector. BP and Shell make up a sizeable chunk of the UK’s benchmark index, so with crude down around 5% on the day, it is always going to be difficult for the FTSE to make traction.

After the excitement over yesterday’s new home sales coming in at better than expected, the US housing slump is still showing of signs of abating. Sales of homes may have increased more than expected by volume, but prices are continuing to plumb new depths. The 10 and 20 city indices are down over 25% from their peak and over 18% on last year. House prices are now back to 2004 levels with further to go if the current trend line is anything to go by.

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Equities shot out of the starting gate today on both sides of the Atlantic. In the UK, it was Lloyd’s turn to join the party after a bullish note from Citi Group whet investors’ appetite for the new banking giant. With a fundamental valuation of financial shares being difficult to say the least, confidence has been the currency of choice ever since the credit crisis broke. Today, confidence is working for the banks as the idea of nationalisation is shoved to the sidelines for now.

US markets launched higher from the open in large part due to the bad bank plan announced by the Obama Government. Such a opening large gap higher is unheard of on a Fed day, normally rate decision days are tight affairs before the announcement. No-one expects the Fed to cut rates this afternoon, but the policy statement will certainly be a market mover and if the markets like what they hear, we could push even higher off the 2008 lows.

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After a positive first half of the week, global equities are serving a reminder of just how difficult bear markets can be. Traders are quick to grab whatever short term profits they have made, making it difficult for rallies to build momentum. Banking shares have reversed a good chunk of the gains made over the last few days, but are still holding above the closing levels from last week. Today worry isn’t specifically related to complex financial deficits, fears are more in relation to general analysis that banks are not the place to be in during a recession. With house prices continuing to plunge on both sides of the Atlantic, rising unemployment and an increased risk of default on loans, the recession itself is enough put pressure on banks. This is before you take into account their dire capital adequacy positions.

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The FTSE is currently indicating lower opening as traders wait for the release of the net consumer credit numbers. While the Bank of England can cut interest rates to help the economy, none of that really matters if the chartered banks are not going to lend that money to consumers or companies. If the numbers come out worse then expected, the FTSE is likely to end the week on a negative note.

Crude oil is set for a weekly decline of 11 percent, as concerns about a deeper U.S. recession outweighed OPEC pledges to increase output cuts. Later today, the US GDP numbers will be released, and analysts are expecting a fall of more then 5%. Should the number come out worse, oil could end the week below the 40 dollars per barrel level.

Predicted opens as of 06:00 GMT
FTSE: 4170.6 (-15.7)
CAC40 2989.10 (-18.40)
DAX30 4390.3 (-29.5)
DOW: 8182 (+37)
SP500 849.73 (+4.00)
Gold: 902.10 (-4.35)
Oil: 41.56 (+0.01)

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Markets are roaring higher this afternoon on better than expected economic data from the US. Today’s better than expected ADP jobs report augurs well for Friday’s all important Non Farm Payroll data. Markets are also encouraged by the noises coming from the Obama administration on the use of tax breaks to stimulate the troubled car market.

In the UK, banks are pushing higher as speculation mounts that the bad bank plan is back on the cards. RBS is rumoured to be the first test of this model with other banks applying this template if successful. Judging by the rally in financial shares today, traders are keen on this plan to come to fruition.

Commodities are firmer, with oil finding support above $40. This is welcome news for oil producers such as BP and Shell which have rallied well from the lows of yesterday. It is even better news for the Russian government which had its credit rating downgraded today due to fears over the impact of the collapse in oil prices.

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Despite today’s US payrolls falling by a more than expected 598,000, stock markets are powering higher. Let’s be frank, this was an extremely weak employment report with 3.5 million fewer Americans employed In January than a year earlier. However, the world’s biggest economy isn’t willing to roll over and die just yet. The rate of decline is accelerating, but US unemployment is still the peaks of the 1980s and 1970s. Stock markets are moving higher today on the hope that today’s dire figures will act as a catalyst for the massive Obama stimulus package. When stock markets go up on bad news, it is often a good sign that investors have re-discovered their appetite for risk taking.

Even BP and Shell are moving higher today despite oil prices dipping below $40 a barrel. The bears have been handed plenty of opportunities to take control, but so far today, the bulls have won out. That is arguably a very encouraging indication that 2009 won’t end the year as it started.

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A Better Week for World Stock Markets

It was a better week for world stock markets last week, with all the major indices pushing further off the January lows.

Despite Friday’s US payrolls falling by a more than expected 598,000, stock markets powered higher. This was an extremely weak employment report, with 3.5 million fewer Americans employed In January than a year earlier. However, the world’s biggest economy isn’t willing to roll over and die just yet. The rate of decline is accelerating, but US unemployment is still below the peaks of the 1980s and 1970s. Stock markets moved higher on the hope that Friday’s dire figures will act as a catalyst for the massive Obama stimulus package. In the UK, banks pushed higher as speculation mounts that the bad bank plan is back on the cards. RBS is rumoured to be the first test of this model with other banks applying this template if successful. Judging by the rally in financial shares last week, traders are keen on this plan to come to fruition.

Commodities continued to drift lower, with oil falling through support at $40. Oil producers shrugged off the news to finish up on the week. However, lower energy prices cannot be shrugged off by all of those with a stake in the commodity. The Russian government had its credit rating downgraded due to fears over the impact of the collapse in oil prices. The rouble continued its free fall.

Last week, the Bank of England cut rates to 1% as widely expected, and at the same time, the ECB signalled that it may cut rates in March. Despite the cut, it was a good week for Sterling, especially against the euro, as traders adjust their positions in light of the strong rate cut hint from Trichet.

There was some positive news from the Halifax housing report which showed that UK house prices rose last month. However, it is hard to read too much into this rise as the data conflicts with the previously released Nationwide report, and month to month figures are often subject to wide variance. Next week’s highlights include a number of speeches from prominent central bankers including Treasury secretary Geithner, and FOMC chairman Ben Bernanke on Tuesday. On Wednesday Governor King speaks at the release of the BOE inflation report. ECB president, Trichet is due to speak on Thursday. Aside from this, we also have US retail sales and unemployment claims on Thursday. When stock markets go up on bad news as they did last week, it is often a good sign that investors have re-discovered their appetite for risk taking.

Even BP and Shell were moving higher on Friday, despite oil prices dipping below $40 a barrel. The bears have been handed plenty of opportunities to take control, but so far today, the bulls have won out. That is arguably a very encouraging indication that 2009 won"t end the year as it started.

A Bull bet predicting that the Dow Jones (Wall Street) will be higher than 8500 in 11 days could return 135% at BetOnMarkets.

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World stock markets are mixed, with the FTSE 100 nudging ahead on a day of tepid trading. The better than expected figures from Barclays has certainly given UK equities on boost, but it is not enough to make the UK’s benchmark index of 100 stocks push through Friday’s trading range.

Barclay’s figures have been well received, but their share price still has a long way to go if it can be deemed to have turned the corner. Last February, Barclay’s shares hit £5.24, even with today’s 12% rise they are still more than £4.00 below this level. The so called independence premium could start to play out in the second half of the year, especially if Barclays start to pay a dividend once again. However, for now, investors are understandably hesitant to take anyone’s word on this.

Wider equities are range bound as the benchmark US indices retreat on the news that the Obama bailout plan won’t be announced until tomorrow. Markets more than anything hate indecision and until a resolution looks likely, or at lease strong rumours of a resolution circulate, equities will trade in a tight range until tomorrow afternoon.

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