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FEZ Fell Due to the Focus on the ECB’s Meeting, EWJ Rose

Sarah Sands

Banking Stocks Had a Negative Impact on European Equity

FEZ closed lower on November 20

On Friday, November 20, the SPDR Euro Stoxx 50 ETF (FEZ) closed on a negative note. It fell by 0.55%. FEZ closed at $35.89. The ECB’s (European Central Bank) meeting is scheduled for December 3, 2015. At a press conference in Frankfurt on November 20, the ECB’s president, Mario Draghi, hinted that the ECB will reveal its additional stimulus measures at the meeting on December 3. He also added that if the current steps aren’t enough to achieve the inflation goals, then the Fed will do what’s necessary to raise the inflation as soon as possible.

Since financial stocks are more sensitive to monetary policy measures, they showed some nervousness on November 20. They dragged FEZ down. Banking stocks like Banco Santander (SAN), ING Groep (ING), and Deutsche Bank (DB) registered negative returns.

EWJ closed higher on November 20

On November 20, the iShares MSCI Japan ETF (EWJ) closed on a positive note. It rose by 0.48%. EWJ closed at $12.62. The shares rose after the announcement of the BoJ’s (Bank of Japan) monthly report on the recent economic and financial development. It stated that Japan’s economy continued to recover at a moderate pace. The industrial production has been flat because of a slowdown in the emerging markets. However, the rise in the domestic demand, combined with a rise in corporate profits, will drive the economy.

Other global indices

On Friday, November 20, 2015, the SPDR S&P 500 ETF (SPY) closed 0.36% higher. However, SPY’s significant holdings like JPMorgan Chase (JPM) and Wells Fargo (WFC) closed lower by 0.18% and 0.27%, respectively, ahead of the FOMC’s (Federal Open Market Committee) meeting.

In the commodity space, the SPDR Gold Shares (GLD) closed 0.45% lower at $103.09. The United States Oil (USO) fell by 0.23% as US drillers eliminated ten oil rigs in the week ending November 20, 2015.

In the next part, we’ll look at FEZ’s industry-wise performances on November 20.

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