Friday morning, the S&P 500 Index e-mini futures (ES-H3) was trading lower by 2.75 points to $1514.50 per contract. Traders and investors seem to be a little hesitant about buying stocks after the Q4 gross domestic product (GDP) in the Euro-zone declined by 0.6 percent. Analysts were expecting a decline in Euro-zone GDP of 0.4 percent. The European markets could come back to haunt the major stock indexes around the world later this year.
Traders and investors should watch for weakness in many of the European financial equities. Leading equities such as Deutsche Bank AG (DB), UBS AG (UBS), Credit Suisse Group AG (CS), and the iShares MSCI Europe Financials Sector Index Fund (EUFN) could be weak at the start of the trading day. If the U.S. markets are weak and decline sharply then traders should expect deeper declines in many more European equities.
Below you may find the video.