Morning Call by Traders University

Britain’s blue-chip index closed 26.59 points lower at 4,435.5, after rising more than 5 percent last week, with weaker raw material prices hurting oil producers and miners. However, drugmaker AstraZeneca and utility Centrica offered support. The British benchmark is flat for the year, but has rallied more than 28 percent since hitting a six-year low on March 9. Traders at IG markets commented that ‘there was less correction than expected tpday after the rally in the last couple of weeks. ‘There also seems to be resistence at around 4,400 level and there is perhaps hope to continue going for another week. Volumes on the FTSE 100 were at 90 percent of the index’s 90-day average daily volume. Index heavyweight oil producers took most points off the index as crude prices fell below $58 a barrel.From the US, financial stocks sent the market into reverse yesterday, with traders selling stocks lower worrying that the market and financials in particular had risen too quickly since the rally began two months ago. Trading was light compared with last week suggesting that many buyers were taking a break, and not that sellers were out in force. Technology shares fared better after Microsoft Corp. moved ahead with its first-ever debt offering. That had some analysts suggesting that the retreat was a natural pause after a big run, something that could actually be good for a recovering market. The Dow fell 155.88, or 1.8 percent, to 8,418.77, while the Standard & Poor’s 500 index fell 19.99, or 2.2 percent, to 909.24 and the tech-focused Nasdaq composite index fell 7.76, or 0.5 percent, to 1,731.24. Despite Monday’s slide, the S&P 500 is up 34.4 percent from early March, but still down 42 percent from its high in October 2007. There was little data/news of note yesterday but today we have a series of Forex-relevant data releases. In the UK we are expecting a slight improvement in 3 figures; Manufacturing Production m/m, Trade Balance and Industrial Production m/m. In the US the Trade Balance figure is expected to weaken, however, the US monthly Federal Budget Deficit is expected to improve. Canadian Trade Balance figures are also due for release today.