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Daily View - 27th March 2008...

A mishmash of numbers out yesterday, and today will leave investors rather fogged as to what is actually happening on the high street in the UK, and the global economy as a whole.

Speculation that the US will now confirm that it is contracting, (remember the definition of a recession is actually two consecutive quarters of negative growth,) will also have investors a little on the defensive and will probably continue the paralysis in the credit markets. In this scenario the temptation just to sit on the sidelines is almost overpowering but there are always those looking to pick up good value equity when the moment appears right. I have been dipping a toe in the water and acquiring some small stakes in companies that look too oversold, but I have to admit it is nervous stuff.

Over in Europe the picture is even more confused as business leaders in Germany and France express the greatest optimism for almost a decade, whilst Italy, Spain and Ireland squeak under the twin weight of interest rates and strong currency pressure. The ECB has signalled that, far from cutting rates, their inclination is actually to put them up, a prospect which may well lead to some strong words from the Club Med group.

Most indices are pretty much stuck at yesterday's trading levels, when the FTSE had the smallest trading range this year. There may however be a small amount of confidence starting to filter through into the markets. The FTSE is opening some 15 points off on the slightly weaker US performance yesterday, but we are seeing buyers beating sellers by over two to one.

Gold added to Tuesday's move with another 15 buck gain yesterday to the symbolic $950 level where we open this morning. If the Dollar strength is confirmed we may see a little profit taking in the yellow metal but as with the indices our clients continue to be buyers on any weakness.

Painful as the gold fall was for many traders, the fallout in silver was even more dramatic. The price dropped from a high of $21.40 to a low (just before Easter) of $16.70, a move of over 20%.