Norway Oil Strike Rattles ETFs

By Devin Riley,

Shutterstock photo

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'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 Nasdaq, Inc.

This article appears in: Investing ETFs
Referenced Stocks: BNO , DBO , NORW , UNG

More from IndexUniverse




Find a Credit Card

Select a credit card product by:
Select an offer:
Data Provided by