The FTSE fell 222 points yesterday to 4,065, dragged down the final 130 points by the Dow’s influence in the final 2 hours of the session and today watch for further overall weakness. Yesterday – notes Greg Secker – in America The Dow Jones fell 679 points to finish the session at 8,149. Having fallen over 300 points in the opening half hour the index continued to trail down throughout the day to then drop another 300 points in the final hour to the close. This on the back of growing worries that the global economic downturn is deepening. Today with low level news releases watch for further weakness due to commodity prices continuing to fall whilst manufacturing contracts particularly in the east and as the Asia markets have also weakened overnight. Oil has tipped down below the $50 level once more to trade at $49.29 after Opec announced it will wait until mid December before making any further production decisions and Gold fell over $41 to finish $777.60. That’s it for now, good trading and I will speak with you tomorrow.
Friday’s session on the FTSE saw the index range within a 60 point channel for almost the entire day with a very late rally in the closing 15 minutes delivering most of the days 61 point gain to find its close at 4,288. Today with some low level news out at 9.30 am look to component news and influence from America to for any decisive directional moves. The Dow Jones on Friday finished up a modest 103 points at 8,829 having closed three hours early but in that delivered the biggest 5 day rally on the index for a staggering 75 years. Today with relatively high importance manufacturing news out today at 3 pm look at that time for any decisive change to the current Bull intention for the market. Oil is currently trading at $53.30 but there are fears that Opec has not done enough to prevent a repeat of the slump a decade ago as prices then slid to a low in 1998 of $10.35. Gold is at $812.80. That’s it for now, good trading and I will speak with you tomorrow.
