Morning Call by Traders University

In FTSE news, London trading stocks traded mixed after Spain reported its first case of swine flu virus. Traders worried that if the spread of the influenza is not checked soon, the global trade and economies around world may shrink. The FTSE 100 index closed up 11.02 or 0.27% to 4,167.01 with pharmaceutical stocks rising and transportation stocks falling. Aviva Plc increased 5% after it reported 25% increase in its capital surplus on a bond offering and reinsuring life insurance policies.
The Dow Jones industrial average gave up a midday recovery and retreated about 0.6 percent on Monday as the swine flu’s death count in Mexico grew to about 150 people from 100. The Dow fell 51.29, or 0.6 percent, to 8,025.00, its first drop in three days. Wall Street decided to hedge its bets as the U.S. cases of swine flu doubled to about 40.Airline and other travel-related stocks suffered the sharpest losses Monday. Monday’s pullback came on very light volume — a sign that there was more profit-taking than fear in the selling. The Dow’s losses were mitigated by General Motors Corp., which said it will cut 21,000 jobs by next year and ask the government to exchange GM debt for stock. The bailed-out automaker’s announcement did not erase the possibility of a GM bankruptcy, but made it appear a bit less likely. Broader stock indicators also closed lower. The Standard & Poor’s 500 index fell 8.72, or 1 percent, to 857.51, and the Nasdaq composite index fell 14.88, or 0.9 percent, to 1,679.41.
In Forex, the dollar and the yen rallied yesterday on rising risk aversion as concerns grew that the swine flu in Mexico could spread and become a pandemic. The euro fell against the dollar erasing most of Friday’s gains. The flight to safety puts pressure on currencies seen as higher risk such as the Australian and New Zealand. In data releases today at 11.00am GBP CBI Realized sales are due. Then at 3.00pm USD CB Consumer Confidence is due. Later at 4.00pm for the CHF, SNB Chairman Roth Speaks.