Stimulus hopes permeated Wall Street for another day as investors pushed stocks higher amid continuing speculation that the Fed will roll out another round of quantitative easing this Thursday. Before Bernanke gets a chance to satisfy, or disappoint, investors will need to first digest the German court ruling regarding the proposed Euro zone bailout tomorrow morning. News of any gridlock overseas can very easily spark a broad sell-off seeing as how investors have made their high hopes for additional stimulus very clear on both sides of the Atlantic ocean [see also Roubini Bets On QE3].
Global Market Overview: Bulls Charge Ahead Of German Court Ruling
Major equity benchmarks inched into green territory bolstered by intensifying QE hopes and better-than-expected data on the home front. The National Federation of Independent Business’s optimism index came in at 92.6 following the previous reading of 91.2; this marks a modest improvement in confidence among small business as more companies are anticipating a pickup in hiring and sales in coming months. On Wall Street, the Dow Jones Industrial Average took the lead higher with a solid 0.46% gain on the day for DIA.
Bond ETF Roundup
The domestic fixed income market saw mixed performances on the day as growing risk appetites bolstered corporate and junk bonds higher. At the same time, pre-FOMC rate decision jitters drove yields higher on Treasuries as investors resorted to profit taking in this asset class.
Commodity ETF Roundup
The U.S. dollar index traded lower on the day which drove commodity prices higher across the board. Natural gas was the biggest winner as UNG popped over 6% on the day thanks to hopes of tightening supplies, marking a strong recovery for the commodity following its losing streak last week. The agricultural space faced headwinds however as profit taking pressures prevailed and soybeans lead the way lower on the day.
ETF Chart Of The Day #1: EPOL
The iShares MSCI Poland Investable Market Index Fund (EPOL) was one of the best performers, gaining 3.12% on the day. This emerging Europe ETF gapped higher at the opening bell and went onto charge higher until tapering off just shy of the $26.50 level. EPOL was bolstered by hopes that the German court would rule in favor of the proposed bailout and ensure the stability of neighboring debt burdened member nations [see also Euro Free Europe ETFdb Portfolio].
ETF Chart Of The Day #2: VNM
The Van Eck Market Vectors Vietnam ETF (VNM) was one of the worst performers, losing 2.12% on the day. Profit taking pressures knocked VNM lower as above-average trading volumes sank this ETF to multi-month lows; VNM has been posting a series of lower-highs and lower-lows since recently topping out at $21.28 a share on 5/9/2012. The next support level for this ETF comes in at $16 a share, while a break below this level would surely put its 2012-lows at $14.15 a share in sight [see also 5 ETF Superstars of 2012].
ETF Fun Fact Of The Day
The best performing retirement portfolio is our 30 Years Til Retirement ETFdb Portfolio; this strategy is up an impressive 13.28% from a year-to-date perspective.
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Disclosure: No positions at time of writing.