The S&P 500 e-mini futures (ES M1) are trading unchanged this morning at 1292.75 per contract. Often after a large point rally like we saw in the major stock indexes yesterday the next trading session is usually a more subdued trading day.
Last night, the Asian markets traded higher again. The Nikkei Index (Japan) climbed higher by 4.36 percent. Please remember that the Nikkei Index was closed on Monday for a holiday. It seems the markets are pricing in a better situation for the Japanese nuclear reactor crisis. Traders must follow the story closely in Japan as it is still not settled and the nuclear reactors continue to leak high levels of radiation. The Shanghai Index finished higher by 0.34 percent and this type of move will usually not effect the markets in the U.S. very much. The Hang Seng Index (Hong Kong) trader higher by 0.76 percent. The Sensex (India) finished higher by 0.84 percent.
Oil is pulling back a bit this morning as the Chinese government calls for a cease fire in Libya. WTI oil is trading lower by 0.77 cents to $102.32 a barrel on the news. Should the conflict in the Middle East and North Africa flare up again oil prices could easily trade higher again.
Gold and Silver are also trading slightly lower as the U.S. Dollar Index trades higher by 0.03 cents to $75.43. The U.S. Dollar Index has declined lower by 15.0 percent since June 7, 2011. Should the U.S. Dollar Index decline further most commodities will usually trade higher.