Betfair Official Blog

Start diluting your petrol - its running out

Daily View...28th April

The weekend press was relatively benign as, aside from the HBOS move, most sectors have tried to distance themselves from the woes of the London financial centre. Surveys tend to indicate that only a minority of companies have been affected by the credit crunch, not an amazing illumination as most companies have very little or no serious borrowing requirements. Unfortunately it is on the minority that we will probably have to concentrate.

The financial sector seems to be taking the (expected) HBOS rights issue in its stride as with only Barclays to come (and even that not certain), this is likely to be amongst the last of the big calls. Punters are now trying to look through the current problems to the uplands beyond.

Markets this morning are looking to open higher as mentioned but the important point will be whether we are able to maintain our 6100 plus level in the FTSE 100 or whether we will just get sold back through it. There is almost certain to be an attempt to push lower in early action.

With the Grangemouth problem reaching its zenith, the price of Brent has spiked to $117.50 - caution however - this may be an example of 'buy the rumour, sell the fact.' Many factors are driving the price of oil higher but some of them are temporary, and there is a good chance that there will be a spike move higher to take out weak shorts in the near future but that this may well indicate the highs.