Investing.com - Financial Markets Worldwide

Markets Up, Headlines Notwithstanding

Published 04/27/2012, 09:33 AM
Updated 07/09/2023, 06:31 AM
ES35
0.47%

There's a ton of market news this morning. Last night, Standard & Poors downgraded Spain's debt to BBB+ from A, with a negative outlook. Then this morning, Spain announced unemployment had climbed to 24.4% from 23.8%. Believe it or not, the IBEX 35 (Spanish stock index) is trading higher by 1.90% today, which is why we follow charts, not headlines. Stranger things have happened, yet the fact remains that the Spanish stock market is trading higher on this negative news.

Italy, for its part, today sold €5.95 billion in debt as yields climbed to 5.84%. It seems that as long as bond yields remain below six percent, markets are prepared to hold their own. First quarter GDP (gross domestic product) in the U.S. was released at 8:30 am EST. Those numbers were off, revealing a weaker-than-expected expansion of the U.S. economy of 2.2% for the first quarter, missing the 2.5% increase projected by economists. Doubts persist on U.S. economic growth.

Follow the Dollar Index
Perhaps the best way to judge where markets are headed is to follow the U.S. Dollar Index. Right now, world markets are trading inverse to that Index. This morning, U.S. Dollar Index futures (DX-M2) are trading lower by 0.23 cents, to $78.77 per contract. Some leading equities that are likely to be in play today include PowerShares DB US Dollar Index Bullish (NYSEARCA:UUP), CurrencyShares Euro Trust (NYSEARCA:FXE), iShares MSCI Italy Index (ETF) (NYSEARCA:EWI), and the iShares MSCI Spain Index (ETF) (NYSEARCA:EWP).

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