This morning, the S&P 500 Index e-mini futures (ES-U2) are trading lower by 6.00 points to 1394.50 per contract. The decline in the futures comes after some weaker economic data was reported out of China. The interest rates on Spanish and Italian 10-year debt is also rising today causing money to flow back into the U.S. Dollar. As you all know, when the U.S. Dollar is higher the stock markets will deflate and trade lower. Many traders are expecting this trading day to finish sharply higher as the past couple of Friday trading sessions have ended positive, however, when everyone expects the same thing the markets will usually do the opposite. This tells us to be on our toes into the closing bell.
It appears that the LIBOR-gate scandal is not going away anytime soon. Many banks could come under some pressure as politicians continue to seek answers. Some stocks such as Barclays PLC (ADR) (NYSE:BCS), Lloyds Banking Group PLC (ADR) (NYSE:LYG), UBS AG (NYSE:UBS), and Credit Suisse Group AG (NYSE:CS) could be volatile in the near term future.