As has been the trend , markets once again took their cue from headlines concerning the Euro Zone bailout saga. According to a report released today, the European Commission and Spain are supposedly working towards implementing the long list of requirements for a bailout fund, ensuring that the nation is well prepared before it asks the ECB for help. Although this renewed optimism helped bouy markets for the majority of the day, the quarterly rebalancing of the S&P Dow Jones Indexes and expiration of stock-index futures, stock-index options, stock options and single-stock futures kicked up trading volumes during the last hours of trading [see also Seven Simple & Cheap All-ETF Model Portfolios].
Global Market Overview: Spain Rumors Offer Little Relief
U.S. equities erased their gains in the final hour of trading to finish narrowly mixed on the day. The Dow Jones Industrial Average (DIA) and S&P 500 (SPY) slipped into negative territory, while tech-heavy Nasdaq (QQQ) managed to eke out a small gain during the session. In Europe, equities finished broadly higher after reports surfaced that Spain is preparing itself to seek bailout funds. Asian equities snapped back from the previous session’s losses, ending slightly higher on the day: Japan’s Nikkei Stock Average rose 0.3% and China’s Shanghai Composite inched 0.1% higher.
Bond ETF Roundup
Bond investors extended a reversal of last week’s selloff, pushing U.S. Treasuries higher once again. Meanwhile, yields on Spanish 10-year government bonds declined following today’s report.
Commodity ETF Roundup
High hopes for Spain’s economy sent investors flocking to their favorite precious metal, pushing December gold to $1,790 per ounce, a 2012 intraday high. Other commodities were mostly higher, with oil nearing $93 a barrel as investors weighed the recent sour economic reports against potential supply disruptions in the Middle East.
ETF Chart Of The Day #1: IYZ
The iShares Dow Jones U.S. Telecommunications Index Fund (IYZ) was one of the best performers of the day, gaining 1.16% during the session. Spurred by a strong performance in telecom stocks, this ETF gapped slightly higher at open, only to trade higher during morning trading hours. IYZ then slid sideways for the remainder of the day, eventually settling below its high of $26.25 a share [create customized ETF analysis with the ETF Analyzer].
ETF Chart Of The Day #2: GDXJ
The Van Eck Market Vectors Junior Gold Miners ETF (GDXJ) also had strong performance today, gaining 2.0% during the session. Alongside a small rally in gold, GDXJ gapped significantly higher at the open, only to slide sideways for the rest of the day. The fund settled just below its high of $20.39 a share [see also 10 Gold Miners That Pay A Dividend].
ETF Fun Fact Of The Day
The two best non-leveraged Consumer Discretionary ETFs thus far in 2012 are the Dynamic Media (PBS) and India Consumer ETF (INCO), which are up 26.65% and 25.75% year-to-date, respectively.
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Disclosure: No positions at time of writing.
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