Morning Call by Traders University

Daily Update by Traders University

Yesterday, the FTSE 100 rose 45.34 points to close at 4896.23. Yesterday, London’s leading shares finished with comfortable gains, miners and banks showed strong rises. Yesterday, the Dow Jones industrial average rose 3.32 points to close at 9509.28. Yesterday, the Nasdaq Composite Index closed down 2.92 points to close at 2017.98. The S and P 500 index closed down 0.56 points to close at 1025.57. US stocks snapped their four-session winning streak on Monday after a warning over future bank losses saw the markets erase early gains.



Yesterday, debt markets were given a significant confidence boost when Santander (Spain’s largest bank) launched a program to buy back securitised bonds with a face value of €16.5bn ($23.6bn), says the FT. According to the Independent, car dealers were last night struggling to get paperwork to the US government after a late surge in sales under its car scrappage scheme. China’s Construction Bank has said that excess cash in the banking system has led to asset bubbles. This has caused concerns that lenders will rein in credit, which is helping undermine market confidence. Meanwhile a senior government economist Lu Zhongyuan, believes that Chinese investors are over-reacting to talk of monetary policy fine-tuning. He feels the recent slide in stocks will be short-lived.



Currencies that tend to be supported by rising commodity prices were broadly in favour, with the dollar and yen generally lower in an environment that mildly favoured risk. The dollar gained against most major currencies on Monday, recovering from recent declines, traders geared up ahead of key consumer and housing data later this week. Yesterday, traders reacted to upbeat data from both sides of the Atlantic with reports showing a recovery in new industrial orders in the Eurozone in June and an improvement in US economic activity in July. Sterling came under pressure against the Euro, falling to a 11-week low on Monday, after strong Eurozone data compared with the view that the Bank of England may continue with its quantitative easing program and keep interest rates at a historical low for some time. EUR/USD has slipped a little this earlier morning, but is pulling back up to around the 1.4298 level. The JPY has seen across the board strength in overnight Asian trade, with a pick-up in caution evident. USD/JPY is down at 94.00, while EUR/JPY is down at 134.50 from around 135.10.



This morning, Gold is at, 946.40 USD, Copper 287.05 USX and Brent Crude 73.60 USD.



Due for release today there are the Euro German Import Price Index, CHF UBS Consumption Indicator, CHF Employment Level, USD Consumer Confidence, USD House price Index and JPY Merchandise Trade Balance Total.