U.S. stock index futures are following energy prices lower this morning as attention shifts to political risk in Europe.
S&P 500 futures are down by about half a percent and have been negative all morning. German and French indexes were higher but have now turned red as the euro tumbles. This morning’s weakness comes one day after the S&P 500 advanced by 0.08 percent and after Barack Obama was reelected to a second term as president.
Obama’s victory may cause selling in coal miners in particular, which led the market over the last month. Events in Europe are also important, as Greek lawmakers are scheduled to vote on unpopular austerity measures that are considered necessary for the country to avoid a sovereign-debt default.
The euro is lower across the board ahead of the news, while the Japanese yen is higher against most other currencies. That kind of price action is consistent with risk aversion.
— Option Monster