Morning Call by Traders University

The FTSE closed down 70 points yesterday at 4,096. During the first hour of trading yesterday the index lost more than 55 points before ranging sideways for the rest of the morning and into the early afternoon. A good rally started in the early afternoon before falling again to close just below the big number of 4,100. The mining sector took the largest hits as short-term confidence took a slide.
Stateside, the Dow Jones industrial average slipped 8.05, or 0.1 percent, to 8,016.95 after being down as much as 86 ahead of the consumer confidence report, while broader stock indicators also lost ground. The S&P 500 fell 2.35, or 0.3 percent, to 866.16, and the Nasdaq composite index fell 5.60, or 0.3 percent, to 1,673.81.
A closely watched measure of consumer confidence soared in April, coming in at 39.2 rather than the expected 29.6, pulling stocks off an early slide as investors grew hopeful that a better outlook among spenders would translate into bigger cash register receipts.
Stocks ended with modest losses after fluctuating throughout the day. Worries that large banks might need more capital and the spread of swine flu were balanced by news that the Conference Board’s Consumer Confidence Index surged this month to its highest level since November.
On the Forex front, the Dollar and Yen eased slightly yesterday as risk aversion eased, lifting high yielding currencies, such as the Aussie. There is also some caution ahead of US GDP data due later today and any further news from the Federal Reserve on a possible extension of quantitative easing, and for its assessments for any early signs of recovery. In data releases today at 1.30pm, USD Advance GDP q/q is due, then at 7.15pm the FOMC statement is expected to keep official cash rates steady at 0.25%. Later in the day, at 10.00pm, NZD Official Cash Rates are expected to be reduced by 0.5% to 2.50%. At 11.45pm NZD Building Consents m/m are due.