American equity markets finally had a solid day as all three of
the major indexes rose in Thursday trading. The Dow and the S&P
500 both moved higher by about 0.7% while the Nasdaq was the big
winner-buoyed by Cisco's solid report-as the benchmark added about
1% on the day.
In terms of sectors, it was a pretty good day all around
although gains were obviously more robust in the technology market.
Basic materials and financials were also solid performers, while
health care and services were more mixed-to-negative, led by a 3.1%
loss for Wal-Mart.
These broad market gains were likely spurred by more weakness in
the U.S. dollar, as the currency lost at least half a percent
against the yen and the euro. Meanwhile, rates continued to rise
for U.S. Treasury bonds as now the benchmark rate is holding steady
above 1.8% a year (read
Malaysia ETF: The Perfect Emerging Market Fund?
Headline commodities were positive, as gold and oil both rose on
the session, while copper and wheat also jumped higher as well.
Investors did see some weakness in natural gas, while trading
continued to be weak in the cocoa and coffee markets.
For ETF trading, volume was again light although it continued to
tick higher when compared to periods from earlier in the month.
Commodity trading was especially robust, while a few sector and
bond products also had decent days from a volume perspective.
In particular, ETF investors saw outsized trading in the
physically-backed commodity of Platinum with the
ETF Securities Physical Platinum Shares Fund (
. Usually, the product sees about 39,000 shares change hands but
today the product experienced volume well over 350,000 shares (see
Top Commodity ETFs in this Uncertain Market
A large reason for today's spike was undoubtedly the solid
performance out of the metal in the session's trading as PPLT added
just over 3.5%. This move helped the fund move decisively off of
its 52 week lows although the product is still depressed from its
This increase was clearly due to the South African mining
situation as many striking platinum miners in the country are
taking a hard line stance on their issues. Clashes have become
violent, and any geopolitical worries in the
country that has over 80%
of the world's platinum are likely to boost prices in the short
Another fund that saw a great deal of trading was the
PIMCO 25+Year Zero Coupon U.S. Treasury Index ETF (
. This product usually does about 42,000 shares in volume in a
normal day but saw interest spike to 283,000 shares in Thursday's
Is The Bear Market For Bond ETFs Finally Here?
The outsized interest today was probably due to more bearish
activity in the fund as the product declined by about 2.5% on the
session. This loss continued the horrendous August for ZROZ, as the
fund is now down 10.7% in the time frame. Clearly, some investors
must be getting concerned over the long-dated market, as this
segment was one of the best performers to start the year but is now
being crushed in the summer months.
(see more in the
ETFS-PLATINUM (PPLT): ETF Research Reports
PIMCO-25Y ZERO (ZROZ): ETF Research Reports
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