To help investors keep up with the markets, we present our ETF Scorecard. The Scorecard takes a step back and looks at how various asset classes across the globe are performing. The weekly performance is from last Friday’s open to this week’s Thursday close.
- Markets were mixed for the week.
- In October, Manufacturing and Services PMIs in Germany rose to 55.1 and 54.1 respectively. Previous figures for Manufacturing and Services PMIs were 54.3 and 50.9, respectively. Germany’s Business Climate Index improved to 110.5 from 109.5.
- Across the ocean, consumer confidence in the U.S. fell to 98.6 from a revised 103.5. Pundits had expected a showing of 101.
- About 593,000 new homes were sold in the U.S. in September, up from a revised 575,000 last month. Consensus had been for 601,000.
- U.S. crude stockpiles fell 0.6 million barrels last week, after dropping 5.2 million in the week before. The continuing slide in inventories should underpin oil prices.
- U.S. natural gas supplies rose 73 billion cubic feet for the week ending October 21, slightly below estimates of 75 billion cubic feet according to the Energy Information Administration. For an in-depth look at how natural gas ETFs are affected by the weekly EIA Natural Gas reports, read How UNF Reacts to Weekly EIA Natural Gas Storage Reports.
- The U.K. economy grew 0.5% in the third quarter, beating expectations of 0.3%. However, Britain is slowing down as a result of the Brexit debacle. In the second quarter, the economy advanced 0.7%.
- Unemployment claims in the U.S. fell to 258,000 last week, from 261,000 the prior week. Analysts had expected 255,000 claims.
- U.S. durable goods orders fell 0.1% month-over-month for September against estimates of a 0.2% rise. In August, orders advanced 0.3%.
- Brazil cut rates – by 25 basis points to 14% – for the first time in four years. The central bank’s decision had been taken on the back of a strong currency, improving commodity prices and a surging stock market.
- Spanish unemployment continued its downward slide to 18.9%, in a sign the country’s reforms coupled with monetary easing by the European Central Bank are proving their worth.
Risk Appetite Review
- The broad market (SPY ) was slightly up by 0.10%.
- The Equal Weight ETF (SPLV ) was the worst performer, with a 0.44% drop.
- The High Beta ETF (SPHB ) rose 0.34%.
Major Index Review
- Major indexes have posted mixed performances, with the S&P 500 and the Dow Jones among the risers.
- Dow Jones (DIA ) posted the best performance this week, after being the worst performer last week. The index edged up 0.51% in the period, propelling it to become the best-performing asset for the rolling month – up 0.53%.
- The worst performer for both the week and the rolling month is iShares Russell 2000 Index IWM (IWM ), which dropped 1.58% and 3.91% respectively.
Foreign Equity Review
- Foreign ETFs were mixed.
- Brazil (EWZ ) has again beaten all other counterparts, as investors continued to cheer the central bank’s first interest rate cut in four years. Brazil was the best performer of the week with a 0.99% increase. These gains, along with last week’s ones, has made the country by far the best performer for the rolling month, with a spike of 12.54%. For a full list of ETFs with exposure to Brazil you can click here. Furthermore, you can utilize our ETF Screener tool to filter through the entire ETF universe including Brazil Equity ETFs by dozens of criteria such as asset class, sector, region, expense ratio and historical performance.
- India (EPI ) has staged the worst performance this week, falling 1.60% as several components of the index released disappointing earnings results. In addition, a 45% drop during the five months through September in engineering exports to China further dampened sentiment. For more on India, you can read Why India Is Still Playing Catch up to China.
- For the rolling month, Britain (EWU ) was the worst performer with a 3.28% decline, as the country has started to feel the pinch of the decision to vote for the country’s exit from the European Union.
- Commodities posted mixed performances.
- Copper (JJC ) has edged up 3.59% over the past five days, beating other commodities of the bunch. Investors were upbeat on the metal as demand from China, which accounts for nearly half of world’s total consumption, showed signs of improvement.
- Oil (USO ) has advanced 10.01% this month, as inventories in the U.S. have continued to drop. A complete list of oil ETFs could be seen here.
- Natural gas (UNG ) has been again the worst performer for the week, down 9.48%, as stockpiles in the U.S. increased. Forecasts of a cold winter could provide some respite to the commodity going forward.
- Silver (SLV ) has had the worst performance this month for the second consecutive time, dropping 8.33%.
- Currencies were mixed this week.
- The Japanese yen (FXY ) has lost 1.57% of its value this week, as many bulls capitulated.
- The U.S. dollar (UUP ) has advanced slightly this week by 0.24%, but that was enough to secure it the status of the best performer among important currencies. The dollar is also the best performer for the month, up 3.52%, as improving U.S. data boosted bets the Federal Reserve will raise rates in December.
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Disclosure: No positions at time of writing.