Morning Call from Greg Secker
Yesterday, notes Mr Secker, the FTSE 100 closed up 50 at 4,250. Yesterday, notes Mr Secker, the Dow Jones fell 23.05 (0.3%) to 8,299.86, falling four days running and a cumulative loss of 3%. The S&P 500 index rose 5.84 (0.7%) to 900.94, clearing the 900 mark for the first time this week. The Nasdaq rose 27.42 (1.6%) to 1,792.34 following higher than expected earnings from Oracle Corp. US base rates were left unchanged at 0.25% in last nights eagerly awaited FOMC statement. There were no real surprises and indications that the Fed would not step up its spending to purchase Treasuries and other debt to push interest rates lower as the view is that the US economy is stabilizing and on the mend. The FOMC statement last night hinted that rates would remain unchanged in the US. USD is trading lower against major currencies today, amid improving investor interest towards high yielding assets. The Confederation of British Industry reported that UK June retail sales volume remained unchanged from the previous month, in line with market expectations. Today is the BIG unemployment claims high news at 1:30pm and at 3pm Fed Chairman Bernanke testifies.