FRX: Markets Attempt To Rebound After Sharp Decline
Yesterday, the major stock indexes sold off sharply in a broad based decline. Traders and investors sold stocks as the problems in Europe and Asia reemerged. This morning, the major stock indexes are all rebounding ahead of the opening bell. The S&P 500 Index e-mini futures (ES-H2) are trading higher by 6.50 points to 1348.75 per contract. Traders should watch the U.S. Dollar Index very closely. If the U.S. Dollar Index declines it is usually an indication that the major stock and commodity indexes will inflate and trade higher. Essentially, every trade is a trade on the U.S. Dollar Index. Traders that do not have a chart of the U.S. Dollar Index can follow the PowerShares DB US Dollar Index Bullish (NYSEARCA:UUP) after the opening bell rings at the New York Stock Exchange.
Earlier today, Spanish and Italian bond yields declined from yesterday's increase. This drop in yields has certainly helped the major European stock indexes today. This tells us that the European Banks could see some small bounces higher today. Leading European bank stocks such as Deutsche Bank AG (NYSE:DB), Credit Suisse Group AG (NYSE:CS), UBS AG (NYSE:UBS), and Banco Santander, S.A. (NYSE:STD) are all trading higher ahead of the opening bell.
