Morning Call by Greg Secker

Yesterday a volatile session left the FTSE down 6 points at 4,163, after the Bank of England base rate cuts remained in line with expectation at home, seeing 2% in the for the first time since 1951 but in Europe the European Central Bank added an extra .25% to the anticipated reduction being shaved off rates there, to see a record .75% cut to 2.5%. All this amid projections for the recession to continue throughout the Eurozone in 2009 and that further measures would be required to attempt the prevention of a worsening situation. With no news out today this side of the Atlantic, directional movement will be lead by America’s newsbreaks and end of week position profit taking here. Yesterday in the USA the Dow Jones fell 215 points to 8,376 on the back of deepening fears that General Motors may file for bankruptcy and Merrill Lynch’s prediction that Oil will fall to $25 a barrel. Today with the Non Farm Payroll figures report leading the way on the news breaks and with the expectation that all these indicators will continue to paint a gloomy picture for the United States economy, look for further potential weakness to be displayed, particularly with end of week position profit taking being added to the portfolio of potentially negative factors. Oil is currently at $43.98 and Gold is at $766.00. That’s it for now, good trading, have a fabulous weekend and I will speak with you on Monday.