Financial Betting Articles

It's that time again - interest rate decision week, when everyone is listening out for the slightest hint of which way the rate-setters will jump. Particularly those with a few quid behind a view of how the markets will react. Rate decisions can play havoc with equity indices and currencies and it's an exciting time to take a market view. The central banks themselves have been pouring over the economic data from the last month to make their minds up on what they should do.

And this last week has given them plenty of food for thought. Mixed messages came from HSBC, the last of the major UK banks to release its annual figures. 10% growth in profits to £12.2 billion sounds all fine and dandy but £8.7 billion of that was wiped out by credit crisis write-downs. That dwarfs the £4.6 billion of write-downs from RBS, Barclays, Lloyds TSB and HBOS combined. Nevertheless, the share price managed to buck a falling market in the wake of the news, buoyed by the underlying success and the 11% increase in dividend.

Another big loser from the sub-prime fall out emerged last week, with UK hedge fund ABS Master Fund being closed by Peloton Partners. It's this kind of uncertainty in the financial services sector that makes setting interest rates such a tricky business. Predictability and a measured response is needed to reassure an edgy market.

But where there are losers there are also winners - anyone backing oil and the Euro will be aware of that. Dollar and Sterling weakness has been precipitated by expectations that the US Fed and the Bank of England will bring interest rates down. Contracting manufacturing and construction figures, as well as low consumer confidence, is bad news Stateside and a rate cut could be the tonic. This side of the pond, poor housing and construction numbers are weighing on the minds of the MPC. Conversely, the ECB is tipped to hold rates or increase them in the light of Eurozone inflation of 3.2%.

Oil too has returned to that $100 plus per barrel territory, due in no small part to the weakness of the dollar. This is going to go some way to pushing up inflation as the cost of producing and transporting products increases. The rate setters will have to walk that tricky tight-rope between stimulating a troubled economy and boosting inflation.

Exchange rates, company results, inflation, economic performance - come Thursday, all these factors will be thrown in to the pot for the Bank of England the ECB to cook up a tasty lunchtime gumbo for the markets to devour. Why not visit ChoiceOdds.com for a feast of finger-lickin' fast-paced financial betting products.

Despite trading in a 423 tick range in February, the FTSE finished the month only 4.5 ticks (0.08%) up.

The DAX surrendered the slight gains of recent days to stand down 1,319.19 ticks (-16.35%) since the start of the year.

Fear of a US recession was reflected in the DOW's February performance, down 383.97 ticks or 3.04%.

A woodchuck would chuck over 40 cubic feet of wood (if a woodchuck could chuck wood).

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