Oil falls on poor economic data
The FTSE is currently indicating a flat open, as traders wait for theinterest rate decision by the Bank of England. While a 100 basis point cut
is all but assured, there are some analysts who are predicting the BOE will
surprise everyone again and cut 150 basis points, this would push the FTSE
into positive territory but would be disastrous for the British Pound.
Crude oil continues its free fall, as the longest economic contraction since
World War II has slashed demand worldwide. Oil currently trades just under
47 dollars per barrel, as lack of production cuts by OPEC and falling demand
from consumers has resulted in an oversupply situation. Oil should settle
nicely around 45 dollars per barrel by the end of the week.
Predicted opens as of 06:00 GMT
FTSE: 4163.4 (-6.1)
CAC40 3162.80 (-1.20)
DAX30 4563.2 (-10.30)
DOW: 8474 (-118)
SP500 858.18 (-10.25)
Gold: 768.10 (-2.80)
Oil: 45.68 (-0.79)
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