|Bid||37.30 x 4000|
|Ask||37.31 x 1000|
|Day's Range||37.19 - 37.37|
|52 Week Range||31.95 - 41.03|
|PE Ratio (TTM)||N/A|
|Beta (3Y Monthly)||1.14|
|Expense Ratio (net)||0.29%|
Long disappointing and downtrodden, eurozone stocks and the corresponding exchange traded funds are rebounding this year. As Feb. 5, the iShares MSCI Eurozone ETF (CBOE: EZU) and the SPDR Euro STOXX 50 ...
Defensive sectors outperformed, while relative strength is close to a "risk on" breakout. Growth estimates in Europe are a potential problem.
After rallying last year, European stocks and the related exchange traded funds are disappointing investors in 2018. For example, the SPDR EURO STOXX 50 (FEZ) is lower by nearly 7% while the SPDR STOXX Europe 50 ETF (FEU) is off by a comparable amount. The $3.44 billion FEZ tracks the EURO STOXX 50 Index, a benchmark that focuses on Eurozone equities.
Economic data released from the euro area remained upbeat as economic data that included German and French business activity was better than expected. The other major factor that drove the euro higher was the assurances by Italian politicians that their nation would stay within the European Union. European equity markets, which are tracked by the Vanguard FTSE Europe ETF (VGK), didn’t have the same enthusiasm as the euro, as new tariff threats to the European car industry from the Trump administration unnerved investors.
The European Central Bank's plan to spur the economy with a massive bond-buying program will come to a halt in December as it decided on Thursday to keep interest rates flat through next summer. The decision to keep rates static came as the result of incoming data correlating with the ECB's earlier economic forecasts. The ECB's monthly bond purchase program was granted an extension through the final quarter of the year, but at a slower pace--a sign that the bond-buying would most likely come to a halt in December if the Eurozone economy remains robust.
The euro-dollar (FXE) exchange rate managed to move back above 1.16 against the US dollar (UUP) as Italy’s Five Star Movement and League formed a coalition last week. European equity markets, which are tracked by the Vanguard FTSE Europe ETF (VGK) remained under pressure as political uncertainty in Italy and Spain remained in focus. As per the latest Commitments of Traders report, which was released by the Chicago Futures Trading Commission on June 1, speculators have decreased their bullish positions on the euro (EUFX) by 16,707 contracts as of May 29.
Last week, the euro-dollar (FXE) exchange rate moved below 1.16 for the first time in six months, driven lower by Italian and Spanish political uncertainty. With no mainstream party in the lead, Italy could face another election in a few months. The election could give a lead to populist parties, which is seen as a threat to Italian membership in the European Union. Similar uncertainty exists in Spain, with Spanish Prime Minister Mariano Rajoy facing a thrust vote on June 1.
Eurozone has been going through a rough patch lately with the economy losing momentum. This is especially true as the series of data this month points to a slowdown after the fastest annual expansion in a decade.Source: ShutterstockDownbeat Data
Given the prospect of monetary easing policies for some more months and a weakening euro, investing in a Eurozone ETFs could be a good idea.