FEZ Closed Higher for Second Day, Snapping 6-Day Losing Streak
FEZ Rose for Second Day as Chinese Market Paused Its Downtrend
FEZ rose 1.2%
On Tuesday, January 12, 2016, the SPDR Euro STOXX 50 ETF (FEZ) and the iShares MSCI Eurozone ETF (EZU) rose for the second day, breaking their six-day losing streaks. FEZ rose 1.2% and EZU rose 1.4% on the day as Chinese market regulators tried to stabilize the market and the Chinese market paused its downtrend.
Worldwide investor sentiment was negative because of the Chinese economic slowdown. Any recovery in the Chinese economy or stabilization in its financial market will help markets to stabilize worldwide. Stabilization in crude oil is also important for the world market.
US oil fell below $30 a barrel
All the global markets opened on a positive note on Tuesday, January 12, 2016, but markets were under pressure due to the fall in crude oil prices. Markets went into the red after opening but closed higher as investors wanted to stay away from the pressure of new lows in crude oil.
Oil prices remained at their multiyear low as oversupply concerns continued. Brent crude hit a low of $30.34 a barrel and US crude oil fell below $30 a barrel. It was the longest consecutive decline for crude oil. Analysts cut their target for crude oil in 2016. Standard Chartered said crude oil could fall as low as $10 per barrel.
Other global indexes
The SPDR S&P 500 ETF (SPY) and the iShares MSCI ACWI ETF (ACWI) rose for the second day in a row. SPY rose 0.81% and ACWI rose 0.65%. However, the iShares MSCI Japan ETF (EWJ) fell 0.52% on Tuesday, January 12, 2016. Major stocks in SPY such as Apple (AAPL), J.P. Morgan (JPM), and Wells Fargo (WFC) rose 1.6%, 0.22%, and 2.5%, respectively, on the day.
In the next part of this series, we’ll analyze the performances of FEZ’s various industries as of January 12, 2016.
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