European events were again in focus during Tuesday's trading
session as the Greek polls published over the weekend showed a
pro-euro zone party leading an anti-bailout party ahead of next
month's elections. Renewed hopes of Greece's commitment to the
monetary union pushed the markets higher earlier in the trading
session with the Dow rising 157 points. Some reports from China
regarding more monetary stimulus also helped the stocks.
However, the markets gave up parts of the earlier gains after
rating agency Egan-Jones cut Spain's credit rating third time in a
month. U.S. economic data releases during the day were rather
According to the S&P/Case-Shiller home price index, the
average home prices rose in 12 of the 20 cities that it tracks,
though the overall index was down 2.6% year-over-year. Further the
drop was not as sharp as in earlier months, renewing hopes that the
housing prices were finally bottoming out. On the other hand,
consumer confidence index suffered its biggest decline in eight
months, indicating that Americans are still worried about declining
home values, high unemployment and worsening global economic
The Dow Jones finished the day higher by 1.01%, while the Nasdaq
and the S&P 500 rose 1.18% and 1.11% respectively. (Read:
Try Value Investing With These Large Cap ETFs
In terms of sectors, financials largely finished the day in the
positive zone led by a 4.1% gain in Bank of America (BAC) shares.
Capital goods, basic materials and technology sectors were also in
the green. Caterpillar (CAT) was up 2.9%%, while HP (HPQ) was the
major gainer in the tech sector, ending the day up 2.1%. Facebook
(FB) declined further during the day, ending the day below $30 for
the first time, 24% below its IPO price.
Currency markets continued to be in the US dollar's favor, on
the back of safe-haven buying resulting from growing threats for
bailout for Spain. The ICE dollar index rose to 82.468, from
82.228, while the Euro was down to its nearly two-year low. (Read:
Dollar and Yen ETFs To Benefit From the Greek
Gold and silver prices closed the day lower, while copper was
slightly up. Oil prices continued to trend down but the losses were
ETF trading was also mixed as investors saw more interest in
European trading, as well as oil, financials, and global ETF
segments as well.
Global X FTSE Greece 20 ETF (
) was a big gainer for the day, ending the day up more than 6%
while the volume jumped from about 12,800 to about 22,800 shares.
iShares MSCI Spain Index (
) was down 3.9% on bailout fears. (Read:
Euro Small Cap ETFs The Way to Play Europe
Latin America ETFs saw strong investors interest, with the
iShares S&P Latin America 40 Index (
) trading 2.5 million shares in the day against an average of just
about a million shares. There was a nice spike in the volume for
iShares MSCI EAFE Small Cap Index (
) also, which saw 1.1 million shares being traded against an
average of about 0.3 million.
(See more in the
ISHARS-SPAIN (EWP): ETF Research Reports
GLBL-X/F GREC20 (GREK): ETF Research Reports
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