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ETF Morning Call: Markets Await US Election

Ndubisi Onuora



  • Asian stock indexes slipped, as South Korean car manufacturers Hyundai and Kia lost ground. The sell-off in the two companies came on reports that they misled their customers about the gas mileage of their vehicles.
  • The Nikkei fell 0.48 percent; S'P/ASX 200 rose 0.32 percent; Hang Seng dropped 0.47 percent; KOSPI declined 0.55 percent; the Shanghai Composite slipped 0.14 percent.



  • European stock indexes dipped today before Tuesday's U.S. election, and as Greece worked tirelessly to obtain a bailout. Look for action in the Vanguard MSCI Europe ETF (VGK).
  • The service sector PMI in the U.K. in October fell from 52.2 in September to 50.6; analysts had expected a smaller drop, to 52. However, the data show that while the service sector is growing at a slower pace than anticipated, it is still growing.



  • U.S. stock futures remain unchanged ahead of Tuesday's election. The market is also closely watching Greece's moves to obtain further financing.
  • Analysts predict that the ISM non-manufacturing index will fall from 55.1 in September to 54.9 in October. Such a decline would suggest monthly orders are slowing down, but they would still be considered to be in growth territory.



No major earnings news today.



All commodities news is as of 7:45 a.m. ET.

Gold and Silver Climbed

  • Gold rose 0.14 percent, or $2.28, to $1680.38. Expect increases in the SPDR Gold Shares physical bullion ETF (GLD).
  • Silver gained 0.10 percent, or $0.03, to $30.94. Keep an eye on the iShares Silver Trust (SLV).


WTI and Brent Oil Advanced

  • The November contract for WTI crude oil ascended 0.22 percent, or $0.19, to $85.05 per barrel.
  • The November contract for Brent crude oil climbed 0.02 percent, or $0.02, to $105.70 per barrel.
  • Expect increases in the United States Oil Fund (USO) and in the United States Brent Oil Fund (BNO).


Fund Flows

On Friday, Nov. 2, 2012, the top ETF in nominal inflows was the SPDR S'P 500 (SPY), with creations of $1.51 billion. The top ETF in nominal outflows was the iShares Russell 2000 (IWM), with redemptions of $1.08 billion.


ETF Launches

None as of yet today


ETF Filings

None as of yet today


Economic Calendar


  • ISM Non-Mfg Index - 10:00 a.m. ET



  • UK


◦      CIPS/PMI Services Index - 4:30 a.m. ET


  • New Zealand


◦      Labour cost index - 4:45 p.m. ET


  • Australia


◦      RBA Announcement - 10:30 p.m. ET


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