Norway Oil Strike Rattles ETFs

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The impact of the strike, which briefly sent crude prices $1.54 a barrel higher on Monday, also illustrated how equity ETFs can move in response to important macroeconomic concerns. The strike luckily ended on Tuesday.

Two ETFs-the Global X FTSE Norway ETF (NYSEArca:NORW) and the iShares MSCI Norway Capped Investable Market Index Fund (BATS:ENOR)-offer exposure to Norwegian stocks.

The funds, though small and lacking heavy trading activity, offered a window into the market's reaction to a possible decline in Norwegian energy output.

To understand the movement in NORW and ENOR, you have to keep in mind that in Norway, a reduction in oil output is a big deal.

The country's economy relies heavily on energy exports, with as much as 65 percent of its exports being oil and gas. A severe reduction in output would undoubtedly be a bearish signal for the economy there.

The markets responded accordingly to the strike, knocking more than 3 percent off of iShares' ENOR and over 2 percent off of Global X's NORW, before the funds rebounded somewhat Tuesday.

5-Day Returns of Two Norwegian ETFs:ENOR and NORW

5-Day Returns of ENOR & NORW Don't forget to check IndexUniverse.com's ETF Data section.

Copyright ® 2012 IndexUniverse LLC . All Rights Reserved.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , ETFs

Referenced Stocks: BNO , DBO , NORW , UNG

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