Morning Call by Traders University

Yesterday the FTSE 100 closed down 9 points to close at 4,425. The index is hovering around the 200ema following the high-test bar on Thursday. This bar marked the end of 5 consecutive green bars. The FTSE 250 has powered through her 200ema and is gaining support from the 10ema showing there is more strength in the 250 than the 100 at the moment.
Stateside, the Dow rose 50.34, or 0.6 percent, to 8,469.11 after falling 155 on Monday. The S&P 500 index slipped 0.89, or 0.1 percent, to 908.35 and the Nasdaq composite index fell 15.32, or 0.9 percent, to 1,715.92. Stocks ended mixed but well off their lows on Tuesday as early concerns about a barrage of stock offerings eased and as rising oil prices lifted energy stocks. The financial stocks that pounded the market to 12-year lows in March and then led the bounce higher fell for a second day. Even after sliding this week, bank shares have roughly doubled since early March, as measured by the KBW Bank Index. The fluctuations came as some traders worried that the economic recovery won’t be as brisk as hoped when stocks were posting big gains over the past eight weeks.
In forex-related news yesterday we had a range of good results in the UK with Manufacturing Production m/m, Trade Balance, Claimant Count Change, Average Earnings Index 3m/y, Industrial Production m/m and RICS House Price Balance all coming in better than expected. The only lagging UK figure yesterday was the Unemployment rate which increased to 7.1%. Cable strengthened as a result closed at 1.5264. Elsewhere, we had good Trade Balance and neutral Federal Budget Balance results in the US, good Trade Balance figures in Canada and good Home Loans m/m figures in Australia. The Fed Budget was also announced in Australia. Today we have the BOE Inflation Report due in the UK, which will be important. We also await Core Retail Sales m/m and Retail Sales m/m from the US.