ETF Morning Call: 'Fiscal Cliff' Pressures Markets

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International

Asia

  • Asian stock indexes outside of Japan generally fell due to concerns about the U.S. "fiscal cliff," but the Nikkei gained again due to the weakening of the yen.
  • The Nikkei soared 2.2 percent; S'P/ASX 200 descended 0.29 percent; Hang Seng gained 0.24 percent; KOSPI dropped 0.53 percent; the Shanghai Composite slipped 0.77 percent.

 

Europe

  • European stock indexes dropped ahead of talks in the U.S. concerning the budget. Look for decreases in the Vanguard MSCI Europe ETF (VGK).
  • The merchandise trade report for September showed that the EMU's trade surplus increased to $11.3 billion from $9.9 billion in August, far exceeding expectations of an $8.5 billion surplus.

 

Domestic

  • U.S. stock futures declined as investors grew wary of the fiscal cliff, and ahead of industrial production data.
  • Analysts estimate that industrial production in October fell to 0.2 percent from 0.4 percent in September, and that the manufacturing component increased to 0.3 percent from 0.2 percent in September.

 

Earnings

No major earnings news affecting ETFs today.

 

Commodities

All commodities news is as of 7:05 a.m. ET.

Gold and Silver Descended

  • Gold declined 0.38 percent, or $6.46, to $1709.34. Expect decreases in the SPDR Gold Shares physical bullion ETF (GLD).
  • Silver dropped 1.01 percent, or $0.33, to $32.29. Expect a drop in the iShares Silver Trust (SLV).

 

WTI Slipped and Brent Oil Climbed

  • The December contract for WTI crude oil fell 0.28 percent, or $0.24, to $85.21 per barrel.
  • The January contract for Brent crude oil advanced 0.20 percent, or $0.22, to $108.24 per barrel.
  • Expect declines in the United States Oil Fund (USO) and gains in the United States Brent Oil Fund (BNO).

 

Fund Flows

None as of yet today

 

ETF Launches

None as of yet today

 

ETF Filings

None as of yet today

 

Economic Calendar

Domestic

  • Treasury International Capital - 9:00 a.m. ET
  • Industrial Production - 9:15 a.m. ET

 

Europe

  • EMU

 

◦      Merchandise Trade - 5:00 a.m. ET

 

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