Daily ETF Roundup: Spain Rumors Welcome Choppy Trading

by on October 2, 2012 | ETFs Mentioned:

Investors were in for a volatile day of trading today, as uncertainty surrounding the timing of Spain’s bailout request and festering concerns over the health of the global economy put a cap on gains today. After a morning filled with circulating rumors, Spanish Prime Minister Mariano Rajoy emphasized that the country’s request for a bailout, which would unleash a round of Spanish bond-buying by the European Central bank, is not one that is imminent. Since rumors earlier today had pointed to Spain formally requesting a bailout as early as next weekend, Rajoy’s announcement deflated enthusiasm that has helped buoy the markets. Until more concrete developments are made, investors have no reason to pump money into the markets, and so the bearish sentiment remains [see also October Edition Of ETF Edge Now Available]. 

Global Market Overview: Cautious Fed Is Ready To Take Action 

U.S. equities ended mixed today after a volatile session fueled by Spain jitters. The Dow Jones Industrial Average (DIA) slipped into negative territory, shedding 0.24% on the day. Meanwhile, Nasdaq (QQQ) and the S&P 500 (SPY) managed to eke out small gains, rising 0.21% and 0.08%, respectively. European equities ended lower, while Australia’s S&P/ASX 200 rallied to its highest level since May after the Reserve Bank of Australia lowered its key interest rate by 25 basis points – its first interest rate reduction since June. In Asia, Japan’s Nikkei Stock Average fell 0.1%. Chinese markets were closed for a holiday

Bond ETF Roundup 

U.S. Treasuries held their ground today, extending its winning streak to a third straight session. After Spain reaffirmed that their country’s bailout is not imminent, the safe haven regained much of its lost ground from this morning’s dip.

Commodity ETF Roundup

Conflicting reports from Spain also forced commodities to end mixed during a volatile session. Prices for copper, natural gas, and corn rose today, while soybean prices took a hit after new supplies were delivered to the marketplace.

ETF Chart Of The Day #1: EWP

The iShares MSCI Spain Index Fund (EWP) was one of the best performers, gaining 2.16% on the day. In addition to the Spanish Prime Minister announcing that the country’s bailout is not imminent, a report indicated that Spain’s jobless rate increased by 1.7% from August to September, and yet Spanish equities rallied today. In response, this ETF gapped significantly higher at the open, with trading volumes peaking during the mid-morning and early afternoon hours. EWP slid sideways for the rest of the day, eventually settling below its high of $28.59 a share [see also Europe ETFs: Rising From The Dead].

ETF Chart Of The Day #2: IBB

The iShares Nasdaq Biotechnology ETF (IBB) delivered a strong performance today, gaining 1.08% during the session. Among the key equity sectors, healthcare and biotechnology stocks were the strongest performers, forcing this ETF to gap significantly higher at the open. IBB trading inched slightly higher throughout the day, eventually settling just shy of its high of $145.21 a share [see also How To Pick The Right ETF Every Time].

ETF Fun Fact Of The Day

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Disclosure: No positions at time of writing.