Morning report (31.5)

The positive sentiment of last week came to an abrupt end on Friday when the All Share dropped 0.7%

Nico Kelder, economist at the Efficient Group reports that losses were recorded throughout all the major indices except for construction.

The losses on equities were not surprising as the currency continued to strengthen against the majors gaining between 0.5- and 1%.

Oil traded higher on Friday and is expected to increase even more after the terrorist events over the weekend. European markets closed lower on Friday with US markets closing flat ahead of a long weekend.

Markets in the Far East are trading around 1% lower this morning. We expect that the money supply data will give some direction to the bond market.

Low volume trading is expected on equity markets as the UK and US markets are closed today for their respective public holidays.