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Markets Stall As Dollar Catches Minor Bounce

Published 09/17/2012, 12:11 PM
Updated 07/09/2023, 06:31 AM
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This morning, the S&P 500 Index e-mini futures (ES-U2) are trading lower by 3.75 points to 1462.00 per contract. There seems to be some money coming out of the stock futures as the U.S. Dollar Index trades off of its recent lows. Many traders and investors are now looking at severely overbought markets after last week's central bank created rally. Remember, nothing goes up in a straight line, pullbacks in markets will occur. The problems in Europe are already starting to heat up again. The current Spanish Finance Minister Luis de Guindos is resisting further austerity plans. This could be the next Greece, but don't worry the ECB is now fixing the problem by buying bonds. Spain is expected to ask for a large bailout soon. The IBEX 35 (Spain) is trading lower today by 0.74 percent.

The highly popular and followed Shanghai Index (China) tumbled lower by 2.16 percent. This nose dive in the Shanghai Index tells us that the Chinese ADR's could be weak today if the U.S. markets sell off. Some leading Chinese related equities that could come under pressure today include Baidu.com, Inc. (ADR) (NASDAQ:BIDU), SINA Corp (NASDAQ:SINA), Sohu.com Inc (NASDAQ:SOHU), and the iShares FTSE/Xinhua China 25 Index (ETF) (NYSEARCA:FXI).

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