Morning Call by Traders University

The FTSE 100 looks set to finish the day up after yesterday’s heavy losses, adding 3.14% by 16:09. The Index closed at 3645. Miners led the way this afternoon on the back of China’s better-than-expected industrial figures and on the expectation the Chinese Government will unveil a range of new economic stimulus measures tomorrow. The Dow Jones industrial average rose 149 points, or 2.23 per cent, to 6,875. General Electric was among the few big names to end the day lower. The economic bellwether fell 4.6 per cent to $6.69 for its fourth day of losses as investors worried its ailing financial arm could threaten the whole company. GE has fallen 21 per cent this week. In Forex related data yesterday Australian q/q GDP fell to -0.5% whilst the PMI Services figure in the UK, considered a leading indicator of economic health, was better that expected at 43.2 but still well under the 50+ that would indicate expansion. In the US, the ADP Non-farm payroll figures worsened at -697K but the US ISM Non-Manufacturing PMI had a slight improvement at 41.6. We have lots of important data coming out today and tomorrow so check your data release calendar. Of special notes is the setting of the GBP official bank rate. The rate is expected to be cut by 0.5% but more importantly the BoE is expected to introduce “quantative easing” measures to support it’s interest rate efforts. This means that the government will be injecting straight into the UK economy by buying government paper such as bonds and treasuries.