This morning, the S&P 500 Index e-mini futures (ES-Z2) are trading higher by 3.00 points to $1408.50 per contract. Earlier today, economic data out of Europe was weak, indicating further contraction in the volatile region. Despite the poor economic news the European stock markets are all trading slightly higher on the day. Many traders and investors are still waiting to hear further details regarding the U.S. fiscal cliff. A quick compromise between the politicians seems less likely at this time, but they have until the end of the year to strike a deal.
Last night, the important and highly followed Shanghai Index (China) rallied higher by 2.88 percent. This sharp rise in the Shanghai Index tells us that the Chinese ADR's could be strong today if the U.S. markets are strong. If the U.S. markets are weak then traders should not expect much upside in the leading Chinese ADR's. Some leading Chinese related equities that could be in play today include Baidu.com, Inc (ADR) (BIDU), SINA Corp (SINA), China Mobile Ltd. (ADR) (CHL), and the iShares FTSE/Xinhua China 25 Index (ETF) (FXI).
Below you may find the video.