Morning Call by Traders University

Yesterday the FTSE rallied 98 points to close at 4,446 breaking up through the key level of 4,400 which has provided support and resistance over the last 2 weeks. Bullish sentiment continues to drive the FTSE 100 2.2% higher as all the other major global indices closed up around 2%. Forex news - significant news for today includes the UK’s consumer price index (CPI) reading for the month of April which is expected to rise 0.4 percent, the third straight increase. However, the annual rate of growth, which is more closely watched by the Bank of England, is forecasted to fall to a more than one-year low of 2.4 percent from 2.9 percent. If CPI falls more than projected, the British pound could pull back sharply as the markets will anticipate that the BOE will expand their quantitative easing efforts even further. On the other hand, if CPI holds strong, the currency could rally in response. At 10:00 we see the German ZEW Economic Sentiment figures, previously 13.0 and expected to rise to 20.0, with above 0.0 indicating optimism and below indicating pessimism. This is a leading indicator of economic health and could potentially affect the Euro. At 13:30 we see USD Building Permits, an excellent gauge of future construction activity, previously at 0.52m and forecast at 0.53m. At 12:50 am, Japanese Prelim GDP is predicted to show a fall of 4.2% in the first quarter. The Japanese economy has shown very fast contraction during this crisis. The Dow Jones industrial average rose 235 points yesterday to 8,504 (3% increase), closing most of last week’s losses.