US Markets Rebound after Brussels Attack: Gold Trades Higher
US Markets Rebound after Brussels Attack: Gold Trades Higher
US indexes and gold trade higher as Brussels blast reports settle in
US markets began rebounding later today after taking a fall earlier in the morning. This followed a double terrorist attack at the Brussels airport in the very early hours of the day. Travel stocks, including equities for airline, leisure, and hotels, took a bit hit.
The healthcare sector, however, was seen gaining during the day. The bullishness in major indexes is being seen as a positive sentiment, as investors are showing confidence in US markets and expecting a further revival.
The S&P 500 Futures Index rose by 0.19% today. The NASDAQ Futures and the Dow Jones Industrial Average rose 0.44% and 0.05%, respectively. The US dollar index was trading higher by 0.30% as global currencies, including the euro, weakened against the US dollar.
The risk aversion sentiment caused by the series of blasts in Brussels led to an increased demand in safe-haven assets, causing gold prices to rise. The rally in gold came on the back of increased risk and uncertainty in Europe. The iShares Gold Trust (IAU) was trading higher by 0.14%, while the SPDR Gold Trust (GLD) fell 0.10%.
Manufacturing PMI increases in March
The US manufacturing PMI (Purchasing Managers’ Index) rose to 51.4 for the month of March, marginally up from 51.3 in the previous month but slightly below estimated forecasts of 51.8. Growth in new business and output was a primary reason driving the PMI upward in March versus February. A PMI release above the threshold level of 50 indicates expansion in the manufacturing sector, while a reading below 50 points to contraction.
Impact on ETFs across sector SPDRs
The healthcare and biotech sectors took positive cues today following the series of blasts in Brussels. As for sector-specific SPDRs, the SPDR S&P Biotech ETF (XBI) was the outperformer among major sector-specific ETFs, rising 3.7% on March 22, 2016, at 2:30 PM EST.
The Health Care Select Sector SPDR ETF (XLV) and the SPDR S&P Oil & Gas Exploration & Production ETF (XOP) were also trading higher by 1.2% and 0.81%, respectively.
Among the major sector-specific SPDRs trading on a negative note, the Materials Select Sector SPDR ETF (XLB) fell by 1.0%. The Industrial Select Sector SPDR ETF (XLI) and the Consumer Staples Select Sector SPDR ETF (XLP) fell 0.39% and 0.34%, respectively.
Next, let’s see why European indexes were flat as the markets tried to shrug off the Brussels attacks.
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