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
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
Don't forget to check IndexUniverse.com's ETF Data
2012 IndexUniverse LLC
. All Rights Reserved.