Morning Call by Greg Secker

The FTSE closed up 31 points at 4,309 yesterday having spent all but the first hour in a 60 point range after the news breaks brought information that largely matched expectation. With likelihood of a rise at the open due to Wall Street’s post FTSE close activity and then news breaks at 9.30 lead by the Bank of England minutes look to the 50 ema for a breach at around the 4,350 level which, if held, could signal sustainable upward direction. In America yesterday the Dow Jones surged almost 250 points after the Federal Reserve’s historic decision to further slash interest rates. The unprecedented move to lower its fed funds target rate to a range of 0 to 0.25 percent rather than a fixed point was a surprise and is only the first salvo in a range of tools at the Fed’s disposal that it has committed to use ensuring every effort is used to bolster the troubled economy. The industrial average had traded sideways until the news releases. Today with low level news at noon and the Current Account Balance figures at 1.30 pm a break of the 50 ema at around the 9,000 level, if held, could indicate a sustained upward move also for this index. Oil is currently at $44.25 and gold is at $880.60. That’s it for now, good trading and I will speak with you tomorrow.