ETFdb Weekly Watchlist: EWA, EWJ, SPY Hinge On Slew Of Aussie Data, Labor Reports and BOJ

ETF Database

Bullish momentum took a breather last week on Wall Street as investor concern over the Fed’s timeline for tapering weighed heavily on the market.  In Washington, tense budget negotiations also added to the woes on Wall Street, as Congress continues to argue over how they will avoid a government shutdown, as funding runs out on September 30, 2013. On the economic front, U.S. consumer sentiment was revised higher for the month of September, while durable goods orders and new home sales beat analyst expectations. In addition, the Labor Department reported initial  jobless claims fall 5,000 to a seasonally adjusted 305,000. This week, investors will once again see a slew of economic reports. Below, we outline three ETFs that should see a fair amount of activity during the week ahead [see The Best (And Worst) Performing ETFs For Every Quarter].

1. MSCI Australia ETF (EWA, A-)

Why EWA Will Be In Focus: This fund offers exposure to the Australian equity market, and it is home to over $2.0 billion in total assets. EWA will come into focus on Tuesday as the Reserve Bank of Australia announces its cash rate, which is expected to remain unchanged at 2.50%, and holds its rate statement. Australian retail sales, building approvals and trade balance will also be reported. Retail sales are expected to increase from 0.1% to 0.3%, while building approvals are forecasted to decline 0.7%, compared to the previous recording of a 10.8% increase. The country’s trade balance is expected to come in at -0.45B versus the previously recorded -0.77B figure [see Single Country ETFs: Everything Investors Need To Know].

2. SPDR S&P 500 ETF (SPY, A)

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Sydney, Australia

Why SPY Will Be In Focus:  This prolific ETF is designed to measure the performance of the large capitalization sector of the U.S. equity market. Its focus will come at the end of the week when the latest ADP non-farm employment change data and the unemployment rate are announced on Wednesday and Friday, respectively. Analysts expect non-farm employment to come in at 177K, slightly about the previous recording of 176K. The unemployment rate is expected to remain unchanged at 7.3%.

3. MSCI Japan ETF (EWJ, A+)

Why EWJ Will Be In Focus: This fund is designed to measure the performance of the Japanese equity market, and it is home to over $12 billion in total assets. It will be important to keep a close eye on EWJ on Friday as the country’s monetary policy statement is announced. Investors should also pay close attention to the Bank of Japan Press Conference, which will follow the policy statement [see also How To Pick The Right ETF Every Time].

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Disclosure: No positions at time of writing.

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