This morning, the S&P 500 Index e-mini futures (ES-U3) are trading higher by 10.50 points to 1576.75 per contract. The big catalyst for the bounce in the stock futures comes from the action in the Chinese Shanghai stock market. Last night, the Shanghai Composite plunged lower into the afternoon session, but rebounded to finish the trading day basically flat. In other words, the Shanghai Composite put in a big bottoming tail on the daily chart and this is helping the markets around the world today. The Peoples Bank of China (Chinese central bank) stated that they would guide interest rates to a reasonable range. It seems that the stock markets still have a lot of faith in the central bankers.
Stocks To Watch
Traders should watch many of the leading Chinese ADR's today. Some of the leading Chinese ADR's that could show early strength include Baidu.com, Inc. (ADR)(BIDU), Sohu.com Inc. (SOHU), SINA Corp. (SINA) and China Mobile Ltd. (ADR) (CHL).