"Overnight the Australian Central Bank has lowered interest rates by 1%, the Bank of England should decide its next move on Thursday and the global markets are starting to anticipate and price coordinated rate cuts. Expectations of rate cuts combined with the sharp correction in commodities could create some bottom picking but the low trading volume is creating distortions in the relative values."
Energy analyst Olivier Jakob of Petromatrix said in a report about the current economic climate and potential for interest rate cuts across the board.
"This is technical bounce. The dollar is giving up some of its gains from yesterday and some equities have recovered, the dust hasn't settled yet. We don't know the extent to which demand will slow down. We would like to get back to some stabilization,"
a London-based broker said referring to the recent slide in oil prices.
Updated: October 7, 2008
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