The global rally was put on hold today as weak economic data sent markets lower. As of late, markets have been propped up by the latest slew of central bank plans from around the globe. The new money pumping programs have essentially created a backstop in equity markets, allowing stocks to rally to multi-year highs just several days ago. But with more economic data pointing to a rather gloomy picture of the global market, it is difficult to tell whether or not the central-bank-induced rallies are here to stay or if they are simply a smoke screen. And with the Euro Zone, the U.S., and now Japan in the stimulus policy game, investors remain on edge for how these mega plans will unfold.
Global Market Overview: Stocks Grind As Investors Digest
After U.S. jobless claims came in higher than expected, U.S. equities pared losses earlier in the day, only to straddle the flat line for the rest of the session. The S&P 500 (SPY) and Nasdaq (QQQ) both closed in negative territory, while the Dow Jones Industrial Average (DIA) managed to eke out a small gain on the day. In Europe, equities slipped into red territory. Meanwhile, sour Chinese manufacturing data sent Asian markets lower; the Shanghai Composite fell 2.1% and Japan’s Nikkei Stock Average shed 1.6%
Bond ETF Roundup
Erasing gains from the recent Fed-fueled sell off, U.S. Treasuries rose for a fourth straight session. Investors continued to flock to their favorite safe haven as today’s sour economic data weighed heavily on the market.
Commodity ETF Roundup
Reports that China’s manufacturing sector continued to slow last month sent prices for soybeans and industrial metals lower, as investors’ worries about the troubling nation, who is one of the largest importers of these two commodities, heightened. For other commodities, performances were a mixed bag: prices for silver and natural gas rose, while gold, oil and wheat fell.
ETF Chart Of The Day #1: FXP
The ProShares Ultrashort FTSE/Xinhua China (FXP) was one of the best performers, gaining 2.77% on the day. This ultra leveraged bear fund gapped significantly higher at the open after China’s manufacturing data showed signs of weakness. Following the initial pop, FXP traded flat for the rest of the day, eventually settling below its high of $25.57 a share [see also Cure For The Common China ETF?].
ETF Chart Of The Day #2: UCO
The ProShares Ultra DJ-UBS Crude Oil ETF (UCO) also had a strong performance today, gaining 2.5% during the session. After three days of decline, crude oil finally steadied today, prompting this ETF to rally during the last hours of trading. UCO eventually settled at its high of $31.98 a share [see also The 5 Minute Guide To Gasoline ETFs].
ETF Fun Fact Of The Day
The best performing regional portfolio is our Euro Free Europe ETFdb Model Portfolio in the trailing one year period. This strategy is up 14.05%.
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Disclosure: No positions at time of writing.
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