Jan 09
23
Morning Call by Greg Secker
The FTSE 100 gave up early gains yesterday to close at 4052 losing 7 points with the only element of joy coming that it held up over the 4,000 mark yet again. Generally US stocks fell amid a mix of weak economic data and disappointing earnings news. The Dow pushed aside yesterday’s optimism and dropped 105 points closing at 8122. The index opened the day with early selling pressure and dropped sharply from 8,250 back to the 7,950 zone, as seen in the 15 Minute Chart. The index got another successful test of the 8,000 level and rallied back to 8,200 before ending the day with a loss of 105 points. While Initial jobless claims caused the broader the S&P 500 index to fall 12.74 points to 827.50. The UK is expected to release its figures for GDP and Retail Sales at 9:30GMT which should guide the movement of the pair drastically. The euro drifted down slightly against the US dollar with little influential economic data to lead the market. French consumer spending contracted than anticipated, as a rise in unemployment contributed to the decline. Consumer spending which counts for 15% of the economy helped France dodge a recession in third quarter, but will not contribute to the same outcome as the economy is expected to contract by 1.1% in the fourth quarter. Industrial Orders within Euro-zone continued to depreciate reflecting a rapid contraction within manufacturing sector, which could spill into more problems for the region as a whole. The devaluation of the Ruble by Russian Central Bank could favor the euro, as Russia will be net buyer of the currency. The expectations for both the GDP and the retails sales numbers are expected to show a decline. The UK is expected to receive its worst output figures since 1990 – and official confirmation the country is in a recession. Trade long with great care today, and enjoy your weekend.
