Morning Call by Greg Secker

With a massive drop at the open yesterday, followed by violent reaction at noon and 12.45 pm, to the Bank of England and European Central Bank base rate cuts, the session then dwindled away to close at 4,272 down 258 points against the previous day’s close. The interest rate is the lowest since 1955 and the biggest single cut since 1981 however the initial positive market moves at the announcements, were reversed very swiftly. Today with no market wide news out, look to component news, the usual end of week position profit taking and the Dow lead, at newsbreak time in particular, for any distinct directional movement. Meanwhile once the euphoria and backlash had been completed. the baton was taken firmly in America, with a continued slide by the markets to firmly welcome Obama into the toughest job on the planet, a slide which, enabled the index to deliver the worst two day decline since 1987 due to another 443 point loss, to perch the industrial average at 8,695. With a surfeit of news out today ranging from the infamous and most consistently catalytical Non Farm Payroll at 1.30 pm GMT, on through Pending Home Sales at 3 pm, to Consumer Credit figures at 8 pm, watch closely for further failure of the index should worse than expected news be coupled with end of week position profit taking. Oil and Gold took another big hit yesterday with Oil trading at $60.73 a barrel and Gold at $732.10 for one troy ounce. Have a great day’s trading a fabulous weekend and I will speak with you again on Monday