U.S. stock exchange traded funds fell Thursday morning after the previous session’s late-day slide as a lower economic outlook from the Federal Reserve and European debt rumblings darkened the mood.
SPDR S&P 500 ETF (NYSEArca: SPY) was down 1% in premarket trading Thursday.
In currency markets, the euro weakened against the dollar after European Central Bank President Jean-Claude Trichet said the region’s debt crisis is flashing red. Currency Shares Euro Trust (NYSEArca: FXE) fell 1% in preopen trade while PowerShares US Dollar Bullish (NYSEArca: UUP) rose by a similar percentage.
Gold and silver ETFs also weakened before the bell. SPDR Gold Shares (NYSEArca: GLD) and iShares Silver Trust (NYSEArca: SLV) both declined 1%.
In another sign of the so-called risk-off trade prevailing Thursday, volatility-linked ETFs made gains – iPath S&P 500 VIX Short-Term Futures ETN (NYSEArca: VXX) rose nearly 4%.
In economic news, weekly jobless claims rose above the key 400,000 level and stoked fears the economy is slowing.