This morning, the major stock indexes are catching a bid higher after yesterday’s bloodbath decline. The S&P 500 Index e-mini (ES U1) futures are trading higher by 18.50 points to 1129.75 per contract. The problems in Europe are still very serious. Germany is now trading lower this morning as the European Union is leaning on the only productive country to pay for the rest of the Euro-zone nation. The German DAX is trading lower by 1.50 percent this morning. Spain, Italy, and France have become too big to bail out in the eyes of many investors.
Last night, the Asian markets traded in violent fashion. The Hang Seng Index (Hong Kong) was the largest declining index in Asia, dropping by 5.6 percent. The Shanghai Index (China) ended the session basically flat, this should be considered a victory in the scheme of things. The Shanghai Index is the most important index in the Asian markets. If the major stock indexes hold up today the Chinese ADR’s may have short term strength. Traders and investors must expect extreme volatility at this time.