Betfair Official Blog

Daily View - 13th February

Market graphs continue to resemble a cardiogram as volatility remains the order of the day...

FTSE down 100, FTSE up 200, FTSE down 75 etc etc etc....markets continue to blast all over the place on the most tenuous of news. The Sage of Omaha's offer to kindly reinsure some of the safest debt around (municipal bonds) was met with a swift rebut of "thanks a lot but no thanks," and the upshot of this news was to bolster financial stocks across the globe as the sheep followed where Mr Buffet appeared to be about to tread. Banks shares do indeed look attractive but there is probably a good deal of nasty stuff still out there just waiting to hit the news wires.

The CPI numbers (whilst rising up a massive 0.1%!!) were, in fact, rather cuddly compared to the horror stories doing the rounds after the PPI figures of the previous day. CPI data is derided by many but it is a general calculation used across the globe and as such, is beyond the control of ministers and bureaucrats. With global domestic demand increasing dramatically (especially in the emerging markets), we may very well have to get used to paying more for finished products. In the longer term, with raw commodity supply also limited in its potential growth rates, the absolute limit on production may also very well prove a barrier to increased demand.

FX markets are still stuck in the same range that has permeated activity since the turn of the year, and without a signal of some kind they look well set to continue to do so. The Euro continues to hover just under 0.75 vs the Pound at 0.7435-0.7437 and vs the Dollar is mid range at 1.4540-1.4542.

Gold was the big loser yesterday as investors scrambled for equity, and we have now slapped straight back down below $900 once more which is 30 bucks off the highs of Monday at 896.8-897.3. The last attempt to get down failed at 895 so bulls will be hoping for support here and then, if this goes, the rather stronger support at $885.