Equity markets snapped a two-day losing streak on Wednesday, as comments from Ben Bernanke indicating that interest rates could remain low for the foreseeable future caused a buying spree on Wall Street. Elsewhere, General Motors announced that it would begin winding down Hummer operations after Chinese regulators rejected a proposed deal while Toyota’s president apologized to lawmakers on Capitol Hill for flaws in his company’s products.
The ETFdb 60 Index turned in a broad-based rally, as all but seven of the benchmark components gained ground on the day. The ETFdb 60 finished the day up 5.07 points, or 0.5%, at 1,015.99.
Leading the way higher was the Financial Select Sector SPDR (XLF), which added 1.7% on the day. The financial sector got a big boost from Bernanke’s testimony before the House Financial Services Committee, as investors were reassured that a rate hike was not imminent. XLF is now up almost 2% in 2010 and more than 80% over the last 12 months.
Also jumping on Wednesday was the iShares FTSE Xinhua China 25 Index Fund (FXI), which closed 1.7% higher as investors began to seek out bargains following a potential overreaction to China’s decision to raise minimum bank reserves. Among other ETFs in the China Equities ETFdb Category, the Global X Consumer ETF (CHIQ) added 3.2% while the Claymore/AlphaShares China Small Cap ETF (HAO) added 2.9%.
Disclosure: No positions at time of writing.