economy

The FTSE is currently indicating a higher opening, while traders are disseminating the worse then expected UK consumer confidence which came out while most traders were sleeping. The confidence index dropped to a record low in July, slipping below the level reached on the eve of the 1990 recession, as house prices slumped and inflation accelerated. We believe that traders believe that these figures will force the Bank of Englands hand and lower interest rates, which would be positive for the FTSE.

The FTSE is currently indicating a sharply higher opening, as traders are trying to get their positions in before the release of the UK consumer confidence numbers which are released at 11pm GMT tonight. There are rumours circulating that the number will be higher then expected. Traders are proving that the old saying buy on rumours sell on the news works. Look for the FTSE to stay in the green the whole day.

The FTSE is currently indicating a lower opening, as traders are awaiting the release of the UK lending data which will come out around 8.30am GMT. Analysts are expecting another month of contracting mortgage approvals and loan issues as financial institutions are tightening the lending qualification requirements after being burned by the current credit squeeze. Banks have been announcing write downs for 3 quarters totalling more then 250 billion dollars, and some suggest that this is not over just yet.

BetOnMarkets Weekly Briefing The week ahead.