This morning, the S&P 500 Index e-mini futures (ES-M2) are trading lower by 13.50 points to 1361.75 per contract. The catalyst for the decline in the stock market is once again more European debt problems. This time around the bad news is not coming from Spain or Italy, it is coming from the Netherlands (Holland). The Dutch Prime Minister Mark Rutte offered his resignation after an agreement on austerity measures failed. In the late 1990's there was the Asian contagion and now there is the European contagion as the debt problems spread like a wildfire. The Currency Shares Euro Trust (NYSEARCA:FXE) is trading lower by 0.76 cents to $131.48 a share.
Last night, all of the Asian markets sold off. The Flash HSBC Chinese PMI increased to 49.1 in April. While the number was higher than last month it is important to note that any reading below 50 indicates contraction in the Chinese economy. Leading Chinese ADR's such as Baidu.com, Inc. (ADR) (NASDAQ:BIDU), SINA Corporation (USA) (NASDAQ:SINA), and Sohu.com Inc (NASDAQ:SOHU), are all trading lower before the opening bell.