Learn the trade here. Make it on tradeMONSTER

Options Trading News

December 27, 2012  Thu 7:17 AM CT

SPX: SEE CHART GET CHAIN FIND STRATEGIES


U.S. stock futures are following Europe higher this morning as the Japanese yen weakens and investors bet that politicians in Washington will address the fiscal cliff.

The S&P 500 is indicated to open higher by about one-quarter of a percent. France's CAC-40 is leading gains across the Atlantic with a gain of more than two-thirds of a percent, followed by London's FTSE-100.

The bullish sentiment has increased in the last hour as the euro pushes higher. Japan's Nikkei was the top winner in Asia overnight, climbing almost 1 percent.

There are still no clear signs that U.S. lawmakers will reach a deal with President Obama to avert tax increases and spending cuts at year-end. But the risk has been well known for months and investors appear increasingly comfortable that, even if the situation isn't fixed immediately, it will be addressed by early 2013 after the new Congress is seated.

Worries about the fiscal cliff had caused the S&P 500 to pull back from multi-year highs between mid-October and mid-November. It's been rebounding since then and has been attempting to build support above its 50-day moving average in the last two weeks, which could be leading some chart watchers to expect further gains.

In addition to the political news, the market has a full docket of economic data today. Weekly jobless claims will be released at 8:30 a.m. ET, followed by new home sales and consumer confidence at 10 a.m. ET.

Foreign-exchange markets are painting a bullish picture this morning, while commodities are more negative. Currencies that tend to follow risk appetite--the euro, Australian dollar, and Canadian dollar--are all higher. The Japanese yen is also lower across the board, which tends to support equities because investors use it as a safe haven.

Oil and copper, however, are modestly lower. Precious metals are down by almost half a percent, and most agricultural foodstuffs are posting small declines.
Share this article with your friends


Related Stories

SPX

Options and high-frequency trading

April 18, 2014

There has been much talk lately of high-frequency trading and what it means to the markets and retail traders. The big issues and arguments all point in favor of options.

SPX

Stocks in range as earnings flow

April 17, 2014

This morning's big companies--Goldman Sachs, General Electric, Morgan Stanley, and PepsiCo--are all trading higher after beating estimates.

SPX

GE, Goldman, jobless claims on tap

April 17, 2014

Earnings and jobless claims are the main events on today's calendar. Trading will likely be light with markets closed tomorrow for Good Friday.

SPX

Futures rise, halting recent slide

April 16, 2014

S&P 500 futures are up more than 0.5 percent, while the Nasdaq is up almost 1 percent. Most European indexes are up a similar amount, while Tokyo led Asia with a 3 percent rally.

SPX

Earnings, housing data on docket

April 16, 2014

Today's calendar includes earnings from Bank of America and Google, plus housing data. Economic headlines start early with European inflation, which could affect the euro and energy.

Premium Services

Education & Strategy

When cash is king (of hedging)

Whether your trades are winning or losing, it can be tempting to add to your positions. But in either case,...

View more education articles »
optionMONSTER stockMONSTER tradeMONSTER