Morning Call by Traders University

The FTSE 100 is up 5 percent this week and enjoyed its best monthly run in six years in April. The index is 14 percent ahead overall for this quarter. The UK blue chip index ended 63 points higher at 4,462 on friday after closing 2 points ahead at 4,4398 on Thursday. The index is in positive territory for the year after surging 29 percent since its six-year trough on March 9. Gains in resurgent banks and energy stocks were the main cause to push the FTSE to a four-month closing high on Friday, maintaining the strong positive momentum seen since early March.U.S. jobs data showed that 539,000 jobs were cut by employers in April, the smallest reduction since October, signalling some improvement in the labour market. Oil stocks added the most points to the index, gaining ground with crude prices topping $57 per barrel. With metal prices also getting firmer, miners also rose.
In Forex related data releases on Friday we had positive figures from Germany, Canada and mixed PPI data from the UK but, most importantly, the US Non-Farm Payroll figure was better that expected at -539K. Today is a low news day with nothing of note being released.
The Dow rose by 164 points to 8,574 on Friday, finishing the week up 4.4 percent and scaling back its losses for 2009 to only 200 points. It was the eighth gain for the index in nine weeks. The Standard & Poor’s 500 index rose 21.84, or 2.4 percent, to 929.23, and the Nasdaq composite index rose 22.76, or 1.3 percent, to 1,739.00. For the week, the S&P 500 index jumped 5.9 percent, while the Nasdaq composite index rose 1.2 percent. Bank stocks drove Friday’s advance. Investors were relieved that 10 of the 19 companies will need to raise about $75 billion in new capital as a buffer against losses if the economy worsens. Further fuel for the ascent came from news that job losses slowed in April. The Labor Department said employers cut 539,000 jobs last month — the fewest in six months and much fewer than analysts had expected.