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Futures Lower Following Military Action

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U.S. futures markets are lower Monday morning in the wake of U.S.-led air strikes on Afghanistan over the weekend. Stocks fell across the majority of European and Asian markets Monday. While Japanese markets were closed for holiday, Hong Kong's market fell by more than 3 percent.

Germany's DAX 30 fell by nearly 1.7 percent, while French and London markets slipped by about the same amount.

As one might expect, the sectors that advanced in Europe in the wake of Sunday's military efforts included energy, defense, and gold. Bullish traders might turn to these groups Monday in the U.S.

While there's little in the way of precedent for the current state of the world and markets, it's worth noting that the Dow Jones Industrial Average ($INDU) jumped by more than 4 percent the day following the U.S.-led coalition's first strike on Iraq in 1991 during the Gulf War. While futures are pointing lower this morning, there may be the possibility for history to repeat itself.

The U.S. debt markets are closed Monday to observe the Columbus holiday.

Eric Utley
Option Investor

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