This past week was a rough one for equities, as euro fears overshadowed global data to send stocks into a tailspin. It seems that after taking the weekend to mull over the euro debt deal, investors were less than impressed with the final outcome. The smoking gun probably came from the U.K. refusing to participate, showing that the deal did not do enough to meet the needs of each European nation. The week saw gold and oil take hard hits, as commodity trading was particularly volatile. The coming week will feature a variety of key economic data that will hopefully pull markets from their slide and finish out 2011 on a positive note [see also 12 High-Yielding Commodities For 2012].
Below, we outline three ETFs to keep a close eye on as the coming week unfolds:
MSCI Canada Index Fund (EWC)
Why EWC Will Be In Focus: This fund seeks to replicate an index which measures the performance of the Canadian equity market. It is home to over $4.3 billion in assets and is clearly an investor favorite with nearly 3 million shares traded daily. The coming week will see two important data releases from our neighbors to the north. On Tuesday, Canadian CPI will be announced, looking to improve on a 2.9% figure from last month. Friday will then see the nation release its most recent GDP results, which will surely be a big mover for this fund. EWC will hit the ground running this week, and will likely remain active through the close of the five-day trading string [see also ETFs To Round Out Your International Exposure].
CurrencyShares British Pound Sterling Trust (FXB)
Why FXB Will Be In Focus: The U.K. is already making headlines for its outright opposing of the recent euro deal, but now the focus will turn to the performance of the country itself. The coming week will feature important data for the U.K. economy as well as this currency-based product. The U.K. will release its GDP report for the third quarter on Thursday. Last quarter figures came in at 0.5% and this quarter is expected to do the same. If the country misses its estimate, look for this fund to take a major hit. But if GDP surprises, FXB could be set for strong gains. This ETF has lost about 1.3% on the year and is looking to redeem itself before the year closes [see also ETF Insider: Stay On The Defense].
COMEX Gold Trust (IAU)
Why IAU Will Be In Focus: This past week saw gold turn in a dismal performance. The precious metal started off the week at around $1,700/oz, but quickly dropped down below $1,600, including 5% losses on Wednesday. Now, analysts and investors are beginning to retrace their steps when it comes to their gold allocations. Some believe that the commodity’s bull days are over, while others think that this is simply a bump in the road, and gold will continue its stellar performance. Either way, this week will be an important one for the metal and its investors alike. IAU tracks physical gold bullion and its price represents approximately 1/100th an ounce of gold [see also Three Reasons Why Gold Is Overvalued].
Disclosure: No positions at time of writing.