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U.S. Stocks, ETFs Brush Off Cyprus Scare


The equities markets and stock exchange traded funds eased back to into the green Friday after a tumultuous week clouded by Cyprus banks and fresh wave of Eurozone concerns.

Eurozone concerns escalated earlier this week after E.U. leaders tried to impose bank levies on all Cypriot depositors, which would have eroded confidence in banks and could have posed a precedence for other troubled states, namely Spain and Italy, to mirror. On Friday, Cyprus is looking at a new deal that could unlock billions in bailout money.

While most of our attention was back on Europe, U.S. housing starts and existing home sales data show improving economic conditions.

“Housing will be a major contributor not just to GDP growth, but also to job creation,” said Dan Heckman, a fixed income strategist at The Private Client Reserve at U.S. Bank, said in a Reuters article.

On Wednesday, the Federal Open Market Committee reaffirmed its continuation of its monthly purchases of $45 billion in Treasury bonds and $40 billion in mortgage-backed securities, boosting confidence in the equities market.

Looking at U.S. stock indices, the S&P 500 Index was up 0.1% over the past week, the Dow Jones Industrial Average was 0.6% higher and the Nasdaq Composite rose 1%. All three benchmarks edged higher Friday.

The top three unleveraged ETFs this week were Market Vectors Indonesia Small-Cap ETF (IDXJ) , iShares MSCI Japan Small Cap Index Fund (SCJ) and iShares MSCI ACWI ex US Industrials Sector Index Fund (AXID) .

The bottom three unleveraged ETFs this week were Market Vectors India Small-Cap Index ETF (SCIF) , Emerging Global Shares INDXX India Infrastructure Index Fund (INXX) and Emerging Global Shares INDXX India Small Cap Fund (SCIN) .

In next week’s economic reports, look for more U.S. growth indicators, including new home sales, jobless claims, personal income and an updated GDP number.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.