Monday morning, the S&P 500 Index e-mini futures (ES-Z2) are trading lower by 5.25 points to $1450.25 per contract. The catalyst for the early decline in the stock market comes as the European markets come unraveled a bit. Later today, European finance ministers will meet in Luxembourg to discuss Spain, Italy, and the euro. German Prime Minister Angela Merkel is also expected to visit Greece.
She is expected to face numerous protest demonstrations when she arrives. We shall soon see what comes out of Europe. The real driving force for the stock markets in Europe and the United States is still the action in the U.S. Dollar Index. Basically, all major market indexes will trade inverse to the U.S. Dollar Index.
Leading base metal stocks such as Freeport-McMoRan Copper & Gold Inc (NYSE:FCX), BHP Billiton Limited (ADR) (NYSE:BHP), Vale SA (ADR) (NYSE:VALE), and Rio Tinto plc (ADR) (NYSE:RIO) are all coming under some early selling pressure on the back of the stronger U.S. dollar. Should the U.S. Dollar Index decline after the opening bell rings at the New York Stock Exchange then it would be prudent to expect these stocks to rebound from the morning lows.
Below you may find the video.