This morning, the S&P 500 Index e-mini futures (ES-M3) are trading lower by 11.25 points to $1557.50 per contract. It seems that the risk off trade is back before the opening bell. Yesterday, the major stock indexes caught a sharp bid higher throughout the trading day. So far, this week has seen a huge decline on Monday, a rebound on Tuesday, and now a weak start on Wednesday. This coming Friday is also options expiration for the month of April so traders should expect the volatility to continue into the end of the week.
Today, the Euro-zone countries are all trading sharply lower on the session. There are rumors that Germany and France could receive a downgrade by the credit rating agencies. This is typical during options expiration which is filled with rumors. Either way, this tells us that leading European financial institutions could come under some selling pressure at the start of the session in the United States. Some leading equities that could be volatile today include Deutsche Bank AG (USA)(DB), UBS AG (ADR) (UBS), National Bank of Greece (ADR) (NBG), and the iShares MSCI Europe Fincls Sector Index Fund (EUFN).
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