Released on: April 28, 2008, 11:50 pm

Press Release Author: BetOnMarkets.com

Industry: Financial

Press Release Summary: Following the previous week's heavy buying, global markets
again finished the week positively. However, gains were limited to around half a
percent for the week with the Nasdaq and S&P 500 rising the most. With many cross
winds in the form of bank write downs, and some positive earnings surprises from the
US, it was hard for markets to make significant progress in either direction.

Press Release Body: Volatility continued in the UK financial sector with RBS
releasing the full details of its required cash injection. Gordon Brown called for
banks to be honest in declaring their sub prime losses, but the truth may be harder
to stomach than the rumours. At least now, we might get closer to finding out the
real reasons why British banks were refusing to lend to each other. The fact that
Barclays was down nearly as much as RBS last week, tells its own story. Investors
are voting with their feet, and the prospect of further bad news from British banks
is hard to rule out.

UK Bankers and home buyers alike will also have read the latest US new home sales
figures and gulped. Purchases of new homes dropped to their lowest level in 17 years
in the states. Stricter loan rules and falling prices have been causing buyers to
hold off. The UK housing market may only just be starting to fall, but there is no
denying its descent, and combined with the dearth of new loans available, it may not
be long before UK market also collapses. Markets will continue spasm until we have
more clarity over the success of Monday's BOE mortgage market intervention, and
definitive answers from UK banks regarding their capital adequacy.
Energy ruled the roost again last week and oil kissed the underside of $120 per
barrel at one point. Oil and Natural Gas prices were two standard deviations from
their moving average at one stage, indicating they were too hot and in dire need of
a cooling off, but there was little significant selling to be had. While energy
prices continue to power at full speed, American consumers appear to be running on
vapours.

Further evidence of a US slowdown could be presented in the numerous top tier
economic announcements next week. Wednesday brings ADP Nonfarm Employment changed
and GDP figures. Thursday sees the release of the ISM manufacturing Index and Friday
the all important Nonfarm Employment change and unemployment rate. The week's most
important announcement is the FOMC interest rate and discount rate statement on
Wednesday evening. Expectations are for the US central bank to cut rates to by a
quarter point to 2%, however there is increasing speculation that this may be the
low point of the cycle. Inflation remains a problem and according to research
highlighted by Barry Rithholtz, if inflation were to be measured in the same way
that it was in the 1980's, US inflation would currently be running at 11.6%.

BetOnMarkets.com traders believes that it is possible that markets were holding
back last week in anticipation of this week's US interest rate decision. After
making little significant progress last week, this week could be an entirely
different proposition. An expiry miss pays out if the market is outside of the
predicted trading range at the time of expiry. An expiry miss with the levels set to
1375 and 1407 could return 10% over the next 10 days on the S&P 500. As long as the
market doesn't finish between these levels, the trade will win.

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Web Site: http://www.betonmarkets.com

Contact Details: editor@my.regentmarkets.com
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