European banks and sector-related ETFs have suffered through a negative rate environment, and the European Central Bank just cut key interest rates even further into the red. The iShares MSCI Europe Financials ETF (EUFN) , which provides a targeted play on European financial companies, increased 1.7% on Friday. The ECB cut its key deposit rates by 10 basis points to negative 0.5%, but Europe's financial sector still strengthened on the less-than-anticipated rate cut and the introduction of an exemption for part of deposits that have been struck with negative rates, or a so-called tiering system.
While the headline does not refer to a domestic ETF holding bank stocks, the iShares MSCI Europe Financials ETF (EUFN) , which provides a targeted play on European financial companies, could see some more downside and that's on top of a month-to-date loss of more than 10%. Weighing on Europe’s financial sector, the plunging yields have dragged rates on some government bonds back into negative territory, there are rising concerns over a slowing economy and a money-laundering scandal has driven compliance costs higher, the Wall Street Journal reports. “Just continue to stay away from European banks,” said Ari Wald, head of technical analysis at Oppenheimer, in an interview with CNBC.
The ECB turned dovish as expected in its September meeting by re-launching QE measures and cutting rates. These ETFs could gain/lose on the latest ECB move.
London Stock Exchanges Rebuffs Hong Kong Hong Kong is in the news again, but this time not for rioting. The London Stock Exchange (OTCMKTS:LNSTY), which trades over the counter in the US, has rejected the preliminary $37 billion takeover bid from Hong Kong Exchanges and Clearing (OTCMKTS:HKXCY), and has also said that it has no interest […]The post Market Morning: LSE Rebuffs Hong Kong, China US Ceasefire, Secret Cannabis Formula, ECB Printing Resumes appeared first on Market Exclusive.
Stampeding bull: While U.S. stocks are expensive, they are crushing global rivals and Goldman prefers them to overseas equities based on economic growth.
The ECB hints at more policy stimulus should the economy need. If this happens, the following ETFs will lose or gain.
Europe-related ETFs are gaining momentum, with Eurozone markets hitting new highs as the banking sector led the charge, amid a broader global rally. The iShares MSCI Europe Financials ETF (NASDAQ: EUFN), ...
Though Mario Draghi is about to step down next month, Europe ETFs are likely to gain from the highly expected rate cuts ahead.
ECB President Christine Lagarde keeps rates unchanged for the Euro zone and offers a moderately bullish view on the economy. This puts these ETFs in focus.
These ETFs are likely to soar in the near term if a Brexit deal is passed by Oct 31.
The European Central Bank is widely expected to cut interest rates in the euro zone to even deeper negative levels as European banks urge them not to Continue reading...