The FTSE 100 closed down 14 points at 4194 yesterday as construction materials company Wolseley fell 10% and 3I Group lost 5% of its share price. The index continues in a large consolidation between 3800 and 4600 and is likely to persist in its primary down trend in the medium to long term. Looking at US Stocks the S & P 500 rose 9 points to close at 845, and the Nasdaq closed up 15 points at 1054, up for a third straight day as a rare bit of encouraging news on the earnings front offset fresh signs that consumers remain glum. The Dow had its second straight moderate advance finally closing up 58 points at 8174. The rise came after companies including United States Steel Corp. and American Express Co. managed to post profits in a difficult recession. Financial stocks that were mostly higher also lent support to the market. Speculations indicated that a reversal of the Dow below 8000 would indicate a test of the 2002 low of 7300 and in the long term, penetration of the 2002 low of 7300 would offer a long-term target of 6000. In the Forex markets today all eyes are on the US FOMC interest rate decision where rates are expected to hold at 0.25% and may impact EUR/USD in particular if there are any surprises. For those of you trading into the evening on NZD please be aware that the New Zealand Trade Balance is due out at 21.45. Trade balance is the difference between important and exported goods during the last month. The forecast is for a drop of 100M and should the actual be greater than the forecast then this is good for the currency.

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