Equities are trying to rebound after their second sharp decline in a week yesterday.
S&P 500 futures are up more than half a percent and have been climbing in the last hour, amid moves of a similar magnitude in Europe. Asian bourses fell in the overnight session, but not as much as one might expect given the 1.38 percent slide in the United States. Japan’s Nikkei closed down 0.85 percent and Shanghai shed 1.27 percent.
Perhaps more importantly, the U.S. dollar-Japanese yen exchange rate held the 99 level needed for its upward trend to remain intact. That’s been a key ingredient to the recent rally because it’s channeled money into stocks and increased the competitiveness of companies in one of the world’s biggest economies.
— Option Monster