Friday morning, the S&P 500 Index e-mini futures (ES-Z2) are trading higher by 4.00 points to $1355.25 per contract. The stock futures have been rising on anticipation that some sort of deal will be reached in Washington today regarding the coming fiscal cliff. If a fiscal cliff deal is not reached by the end of the year it will trigger tax increases due to the expiration of the so-called Bush tax cuts and spending cuts under the Budget Control Act of 2012.
Later today, President Obama, John Boehner, and other politicians are scheduled to meet and try to negotiate a final deal. It sounds like more kicking the can down the road, but the action in the stock market is really all we care about as traders.
Thursday night, the Nikkei 225 Index (Japan) surged again closing higher by 2.20 percent. The catalyst for the rally in Japan was once again caused by the pledge to print more money. The Bank of Japan seems to be simply taking a page out of the Federal Reserve. When you increase the money supply markets will inflate and trade higher. The problem with this move by the central banks is that money created out of thin air creates bubbles and problems down the road.
Once again, Japanese ADR's could catch a bid if the U.S. markets are strong today. On the flip side, the Shanghai Index (China) and the Sensex Index (India) both finished lower on the trading session. This tells us that Chinese and Indian ADR's could come under selling pressure if the U.S. markets are weak. Some leading Asian ADR's that could be in play today include SINA Corp (SINA), Infosys Ltd ADR (INFY), Sohu.com Inc (SOHU), and NetEase Inc (ADR) (NTES).
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Fiscal Cliffhanger
Published 11/16/2012, 11:35 AM
Updated 07/09/2023, 06:31 AM
Fiscal Cliffhanger
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