Financial ETFs Gain After Jobs Report
September 3rd at 8:30am by Tom Lydon
Despite the overall jobless rate jumping to 9.6% in August, financial exchange traded funds (ETFs) rose higher in early trading.
According to the ETF Dashboard, SPDR KBW Mortgage Finance (NYSEArca: KME) is leading the way, up more than 8% so far today.
The numbers were enough to encourage people to exit safe-haven investments and move over into riskier assets. Non-farm payrolls fell less than expected and the private sector showed job growth, and the markets will apparently take it. Treasuries edged lower following the news. SPDR Barclays Capital Long-Term Treasury (NYSEArca: TLO) is down nearly 1% so far today. In the last six months, it’s up 11.7%. [The Top 5 ETFs of August.]
The jobs report was a negative for the U.S. dollar as investors sold it off and moved into safer currencies such as Canadian and Australian dollars, seen as being more closely tied to international growth. CurrencyShares Canadian Dollar (NYSEArca: FXC) is up nearly 1%; in the last year, it’s up 4.3%. [Travel the World With Currency ETFs.]
Read the disclaimer; Tom Lydon is a board member of Rydex|SGI.
