This morning, the S&P 500 Index e-mini futures (ES-H2) are trading lower by 8.25 points to 1395.75 per contract. The weaker action in the futures market comes as the Chinese market shows more evidence of slowing down. Last night, BHP Billiton Ltd (NYSE:BHP) said that there are signs that iron ore demand in China is flattening. If China actually slows down it is a real problem for global growth. The European markets are also trading lower across the board today. The most important European stock index is the German DAX which is lower by 1.39 percent.
Last night, the important Shanghai Index (China) finished lower by 1.38 percent. This tells us that the leading Chinese ADR's could be susceptible to declines if the U.S. markets are weak. Traders should watch for early weakness in the iShares FTSE/Xinhua China 25 Index ETF (NYSEARCA:FXI), Baidu.com Inc (NASDAQ:BIDU), SINA Corporation (NASDAQ:SINA), and Sohu.com Inc (NASDAQ:SOHU).