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FEZ and EWJ Fall as Crude Oil Prices Plunge Further

Sarah Sands

FEZ and EWJ Fall Sharply as Crude Oil Hits Multiyear Low

FEZ and EZU fall 1.8%

The SPDR Euro STOXX 50 ETF (FEZ) and the iShares MSCI EMU ETF (EZU) closed on negative notes on Friday, December 11, 2015. Both ETFs fell 1.8% and closed at $34.24 and $34.88, respectively, that day.

The Wisdom Tree Europe Hedged Equity ETF (HEDJ) fell 2.5% on December 11. Falling crude oil prices dragged the market down as a whole. Investor nervousness increased on the expectation of a weakness in commodities. Crude oil prices may signal a broader slowdown. On the other hand, investors’ focus shifted to the upcoming Federal Reserve meeting and a possible interest rate liftoff.

Crude oil at its multiyear low

The continued fall in oil prices added to investor uncertainty ahead of the Federal Reserve meeting on December 15–16, 2015. On Friday, December 11, 2015, oil hit new lows after the International Energy Agency (or IEA) warned that global oversupply could deteriorate 2016 performance.

The United States Oil ETF (USO) fell 2.6% on December 11. Integrated oil and gas stocks for Exxon Mobil (XOM), Chevron (CVX), and Occidental Petroleum (OXY) fell 1.8%, 3.2%, and 3.5%, respectively, on that day. The energy sector ETF (XLE) showed a massive fall on that day, falling 3.8% in a single day.

EWJ falls 1.6%

The iShares MSCI Japan ETF (EWJ) fell 1.6% on Friday, December 11, 2015, following a global sell-off in the equity and commodity space.

Other global indexes

The SPDR S&P 500 ETF (SPY) fell 2% on Friday, December 11, 2015, as crude oil’s multiyear low added to investor fears. The iShares MSCI Emerging Markets (EEM) fell 2.8%, and the iShares MSCI ACWI Index Fund (ACWI) fell 1.9% that day.

Let’s now move to the performances of the various industries of FEZ as of December 11, 2015.

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