Morning Call by Traders University

Britain’s FTSE100 blue-chip index gave up much of Thursday’s 4.3pc gain following the publication of US unemployment numbers. Although the job losses were in line with expectations, the FTSE 100 finished the day down 95.3 points – or 2.3pc – at 4029.67. The FTSE 250 also shed 110.08 points to 6926.2. In Forex related news on Friday the UK Halifax House Price Index (m/m) indicated a monthly fall of 1.9% on UK house prices, however, the UK Services PMI rose to 45.5 and is approaching the 50.0+ level considered expansionary. The Services PMI is considered a leading indicator of economic strength as business purchasing managers hold a very current perspective of their company’s view of the economy, particularly in the UK - an economy with a large services sector.
In the US the all important Non-Farm Employment Change figure came in slightly worse than expected at -663K, supported by an increase in the Unemployment Rate figure at 8.5%. The US ISM Non-Manufacturing PMI also came in lower than last month at 40.8.
In Forex related news today we only have significant releases for the CAD (Building Permits m/m and the Ivey PMI) and the NZD (NZIER Business Confidence).
The Dow ended at another positive close 39 points up after the Treasury Secretary said that he’s prepared to give assistance to bank’s that need exceptional aid in order to get through the current economic state. The index closed at 8017, and has been climbing for the last few trading days but may get rejected at 2 Fibonacci timeframes and continue on it’s long term downtrend.