Filed Under: , ,
Tickers in this Article: EWJ, FXE, RTH
Eurozone drama and economic uncertainty had equity markets in a volatile ride last week,with stocks posting their worst one-day drop this year last Monday. Thoughbullish momentum has undeniably been a dominant force on Wall Street since the new year, controversies surrounding a criminal investigation into Italian banks and a scandal concerning Spanish Prime Minister Mariano Rajyo brought investors' global economic uncertainties back to the forefront. Meanwhile, investors digested a mixed bag of earnings and economic data, though a surprisingly good reading of the U.S. tradedeficiton Friday helped stocks gain back some earlier losses. This week, investors will once again see a slew of economic and earnings reports. Below, we outline three ETFs that should see a fair amount of activity during the week ahead :

1. Market Vectors Retail ETF

Why RTH Will Be In Focus:This ETF tracks an index that is comprised of the 25 largest U.S.-listed, publicly-traded retail companies, a targeted sub-sector of the consumer discretionary space. Top holdings include thebehemothWal-Mart, online retail giant Amazon and Home Depot.Investors should keep a close eye on RTH on Wednesday and Friday as retail sales and consumer sentiment are reported, respectively. Retail sales are expected to come in at 0.1% compared to the previous reading of 0.5%, while consumer confidence is expected to see an uptick .

2.MSCI Japan Index Fund

Why EWJ Will Be In Focus: This fund is designed to measure the performance of the Japanese equity market, and it is home to over $5.7 billion in total assets.Its focus will come in the middle of the week as the Bank of Japan is slated to announce its rate decision and the country's preliminary fourth-quarter GDP is reported. Any statements made by the central bank at its press conference will be closely watched, and any surprises could put EWJ in for a volatile trading session..

3.CurrencyShares Euro Currency Trust

Why FXE Will Be In Focus:This ETF offers exposure to the euro relative to the U.S. dollar, increasing in value when the euro strengthens and declining when the dollar appreciates. Investors should keep a close eye on FXE this week as the region's GDP is reported on Thursday. Considering ECB President Mario Draghi's statements last week, a weak GDP reading may have significant effects on the currency .

Disclosure: No positions at time of writing.

comments powered by Disqus

Trading Center