Morning Call by Traders University

Yesterday the FTSE fell just 21 points to close at 3,694 as investors wrestle with the current lows after heavy falls over the last fortnight. The Dow closed at 6,930 under the significant figure of 7,000. The S&P 500 closed at 721, a little up from the lows of last Friday. The DAX in Frankfurt closed at 3,931 after testing the significant 4,000 level. So overall rather bearish in the global indices with several rejections of big numbers forming resistance. News out of the US is that we are in the worst financial crisis since the 1930’s with the world’s banks still hot out of trouble. In overnight Forex news the RBNZ the dropped official cash rates to 3.0% as expected and the AUD unemployment rate has risen to 5.2% slightly above expectations. At 1230, USD retail sales are due for release which is expected to see a contraction together with unemployment claims. At 1300 the Swiss Libor rate is expected to see a reduction to 0.25%, this is the London interest rate for 3-month Swiss franc deposits. Then later on in the evening at 2145 NZD retail sales results are due which are expected to see a small increase.