The month of November got off to a good start on Monday, as encouraging news from the manufacturing sector and an improved outlook for Ford Motor Company gave investors hope following a wild ride on Wall Street last week. The ETFdb 60 Index, a benchmark of the universe of investable assets available through exchange-traded funds, rose 3.38, or 0.3%, to close at 983.16.
The iShares FTSE/Xinhua China 25 Index Fund (FXI) rose 2.5% on news that export orders rose in October, suggesting an opportunity to cut back in stimulus spending. China’s manufacturing activity, as measured by HSBC’s China Purchasing Manager’s Index, grew at its fastest pace in 18 months in October, suggesting a broadening recovery that still has room to run. China’s bullish outlook also boosted prices of many commodities on Monday, with the PowerShares DB Commodity Index (DBC) gaining 1.8% for the session. While recoveries in many countries have struggled to find their footing, China has plowed ahead, and is currently accounting for a significant portion of global demand for certain resources.
The United States Natural Gas Fund (UNG) led all decliners on Monday, falling more than 3% on expectations for mild weather and ample supplies. Last week, the Energy Information Administration issued a report describing the sharp rise in natural gas reserves as “remarkable,” noting the impact of technological developments that have led to huge increases in the amounts of provable reserves.
Disclosure: No positions at time of writing.