The bulls continued their dominance over the bears to start a week packed with important earnings reports and data releases, as most major equity markets headed higher on the day. The government’s plan to sell nearly 8 billion shares of Citi stock weighted on the financial sector, while energy stocks got a boost from rising oil prices. Outside the U.S., Russian markets shrugged off two terrorist attacks on Moscow subways to continue their run higher, while the World Bank president spotted an opportunity for China to revalue its currency.
The ETFdb 60 Index, a benchmark measuring the performance of asset classes available through exchange-traded products, added 6.74 points, or 0.6%, to close above 1,050. Winners outnumbered losers by nearly five-to-one in relatively light trading.
Among the big winners on the day was the iPath Dow Jones-UBS Copper Total Return ETN (JJC), which gained 3.5% after copper inventories continued to decline. London Metal Exchange copper inventories fell for the 18th straight day, the longest period of consecutive declines since July 2009. Copper is poised to record its fifth consecutive quarterly increase amidst a recovery in the global manufacturing sector. Also boosting industrial metals on Monday was a decline in the dollar, which lost ground against nearly all of its major rivals to start the week.
Losing ground on Monday was the PowerShares DB USD Index Bullish (UUP), a fund designed to replicate the performance of being long the U.S. dollar relative to a basket of developed market currencies. UUP dropped by 0.5% on the day after a pledge from the European Union and International Monetary Fund to assist Greece as the country faces a ballooning fiscal deficit. Uncertainty over Europe’s willingness to prop up Greece has weighed on the euro zone currency in recent months,
Disclosure: No positions at time of writing.