The 10.2% unemployment figure is far worse than what economists had expected, and they don’t see any sign of relief until next year. While the pace of layoffs has slowed, the unemployment rate is continuing to climb, reports Javier C. Hernandez for The New York Times.

Unemployment isn’t just as issue here, either; millions around the world don’t expect to see relief in the form of jobs anytime soon. The European Union forecast unemployment in the eurozone to rise to 10.7% in 2010, up from 9.5% this year. Unemployment ranges from 3.5% in the Netherlands to 18.3% in Spain, reports Greg Keller for the Associated Press. In China, the official urban unemployment rate is 4.3% in the third quarter. Brazil’s unemployment was 8.1% in August, almost unchanged from the previous month.

Gold futures have soared to a record $1,100 an ounce today. While some profit-taking briefly sent gold lower, it resumed its course and analysts expect it to continue to move higher, reports Allen Sykora for The Wall Street Journal. SPDR Gold Shares (NYSEArca: GLD) is up about 0.4% year-to-date. (More on gold can be found here).

Businesses slashed inventories for a record 13th straight month in September, although sales rose for the sixth consecutive time. Many hope that improving sales figures will encourage businesses to start lifting production, although a rising jobless rate heightens fears that consumers won’t start spending anytime soon, reports Martin Crutsinger for the Associated Press. (An ETF to play holiday shopping).

The world’s largest insurer, AIG (NYSE: AIG) reported that it was profitable for the second consecutive quarter. Although things have stabilized, the company’s CEO said that earnings will remain choppy while they restructure.  SPDR KBW Insurance (NYSEArca: KIE) is up about 0.6% this morning.

G20 Finance Ministers are meeting this week to discuss financial reform and economic recovery. While these economies have put in place certain policies in order to push along a recovery, they’re not policies anyone wants to keep in place forever. The general consensus is that it’s too soon to reverse the measures, but it’s not too soon to begin talking about when and how it would happen. Government debt in developed G20 countries is likely to reach 118% of annual national income in 2014, reports Andrew Walker for the BBC.

For more stories on the global economy, visit our global ETF page.

There are three reasons in particular to watch China as its economy continues to evolve into a global powerhouse:

• In October, Chinese manufacturing rose at its fastest pace in 18 months.  China’s PMI was at 55.4, marking the seventh straight month that the index has risen, reports Chris Oliver at MarketWatch.

• Export orders climbed to 55.6 from 54.4, the fifth straight month of gains, and the most robust pace seen since June 2007.

• The government has said that gross domestic product increased by 8.9% in the third quarter and 7.9% in the second. (Five things China needs).

• A sharp rebound in new housing construction starts in September boded well for the months ahead, reports Kathrine Hille for The Financial Times.

• China’s economy has been strengthening on improved domestic demand, a nice change for the export-driven country. (More about China’s economy).

• The nation’s contribution to global economic growth in 2008 amounted to 22%, surpassing the United States to be the world’s number one contributor, states Wang Zongkai and Xie Peng of China View. That figure is expected to reach 50% this year.

For more stories on China, visit our China category.

• SPDR S&P China (NYSEArca: GXC): 55.8% year-to-date

• iShares FTSE/Xinhua China 25 Index (NYSEArca: FXI): up 47.5% year-to-date

• Claymore/AlphaShares China All-Cap ETF (NYSEArca: YAO)

Kevin Grewal contributed to this article.

Holdings: EEG holds companies domiciled in emerging markets; some of the top companies in the fund include Russian natural gas company Gazprom, Brazilian energy company Petroleo Brasileiro, Latin American wireless provider America Movil and Bank of China.

Objective: EEG seeks to track the Dow Jones Emerging Markets Titans Composite Index, which is an index composed of a representative sample of 100 emerging market companies deemed by Dow Jones to be leaders in each of 10 sectors.

Things to Know

• Brazil is the top country, with 24.9% of the weighting. China has 24.3%, Russia has 13.4% and India has 13%. Other countries include Mexico, South Africa, Chile and Indonesia.
• Oil and gas is the top sector, weighted at 30.8%; financial is 22.1%; telecommunications is 11.6%; and basic materials is 9.3%.
• The expense ratio is 0.75%.
• EEG is a relative newcomer on the ETF scene – the fund launched on July 22.

The Latest News

• Emerging Global Advisors CEO Bob Holderith feels that interest in emerging markets should continue to expand. “It’s a 25-year growth story in its sixth year.” The positive growth outlook for emerging markets goes hand-in-hand with the changing demographic picture in these countries.
• Holderith notes that in most of these countries, there’s a huge young population, all looking for the “Western experience”: cell phones, iPods, dining out and more. (More on Emerging Global Advisors).
• Although the pace may eventually slow down, Barron’s reports that emerging markets still have room left to grow in the long haul. And for the time being, they may be the place to hide out as developed markets still work toward normalcy.
• Emerging markets already account for one-third of the global GDP and 10% of the world’s market capitalization.

South Korea’s growth in the third quarter was at its quickest rate in more than seven years, accompanying China and Singapore in reporting faster growth during the September quarter, reports Gillian Murdoch for Reuters. (How to capture China’s growth).

• iShares MSCI South Korea Index (NYSEArca: EWY)
• iShares FTSE/Xinhua China 25 Index (NYSEArca: FXI)
• iShares MSCI Singapore Index (NYSEArca: EWS)

Japan, Singapore, Hong Kong, Thailand and Taiwan all officially exited a recession in the second quarter.

• iShares MSCI Japan Index (NYSEArca: EWJ)
• iShares MSCI Hong Kong Index (NYSEArca: EWH)
• iShares MSCI Thailand Invest Mkt Index (NYSEArca: THD)
• iShares MSCI Taiwan Index (NYSEArca: EWT)

Japan, however, grew 0.6% in the second quarter – less than expected. (Small-cap plays for Japan).

Singapore’s economy expanded in the second quarter at its fastest rate in almost six years, as a result of a surge in biomedical production and construction. (Sectors pushing Singapore’s growth)

Hong Kong pulled out in the second quarter after its economy grew at a faster-than-expected 3.3% from the previous quarter. (Is Hong Kong facing a correction?)

Thailand’s economy grew 2.3% in the second quarter from the first quarter on a recovering manufacturing sector. (Reasons to watch Thailand)

Taiwan’s economy saw growth for the first time in a year during the second quarter. Officials expect rising demand from China to support the island’s recovery. (Why Taiwan’s heating up).

• iShares S&P Asia 50 Index (NYSEArca: AIA)
• BLDRs Asia 50 ADR Index (NasdaqGM: ADRA)

For more information on Asia, visit our Asia category.

Max Chen contributed to this article.

The Economist states that cell phones have a different role in developing countries than they do in industrialized nations. Cell phones are giving many of the world’s poor their first exposure to telecommunications. In the developed world, cell phones generally are just extensions to existing land lines.

What has the expansion of cell phones in emerging markets meant for the industry and these countries?

• A recent study showed that adding 10 cell phones per 100 people in a typical developing country will boost GDP growth by 0.8% per person.
• The spread of mobile phones in developing countries has been accompanied by the rise of home-grown mobile operators in China, India, Africa and the Middle East. These providers rival the providers in the West. (What’s next for global telecom?)
• The emergence of China’s two leading telecom equipment-makers, Huawei and ZTE, have entered the global stage in the past five years and now have a growing reputation for quality and innovation, prompting a shakeout among the incumbent Western equipment-makers (How to play China’s telecom boost ).
• The development of new phone-based services, beyond voice calls and basic text messages, are now becoming feasible.. The services tend to center around agricultural advice, health care and money transfer – things that could deliver enormous benefits to residents of poor nations.

For more stories on the telecommunications industry, visit our telecommunications category.

• iShares S&P Global Telecommunications (NYSEArca: IXP): up 6.9% year-to-date

• SPDR S&P International Telecom (NYSE: IST) is up 11% year-to-date

Kevin Grewal contributed to this article.

The joblessness attributed to the weakened export-oriented industries has been supplemented by job opportunities in infrastructure-related employment, writes Ted Plafker for The New York Times. Exports dropped 22% in the first half of 2009 compared to the same period last year. (How to capture China’s growth).

How can China right itself?

• While many believe Chinese growth is poised to come out around 8% this year, the country needs to fix its dependency on exports and fixed-asset investment, and start increasing domestic consumption in the long run.
• Some argue that widespread change won’t occur until fundamental reforms like a liberalization of the labor market and financial services take place. (Play Russia and China’s gas deal).
• In an attempt to quickly fix the economy, the government overlooked the struggling small- and medium-sized companies, which number around 60 million and provide half of China’s tax revenues, two thirds of total exports and three quarters of new jobs. Only the well-connected larger companies were able to get the quick cash fix needed. (Is China in a bubble?)
• John Frisbee from the U.S.-China Business Council believes China is expanding its industry domain into other sectors not previously associated with “made in China.”
• According to Steve Henn for Marketplace, China Investment Corp. has been on a buying spree, picking up mines and energy companies around the world. Philip Levy, an economist at American Enterprise Institute, says China is worried about its lack of natural resources.

For more information on China, visit our China category.

• iShares FTSE/Xinhua China 25 Index (NYSEArca: FXI): up 52.4% year-to-date

• Claymore/AlphaShares China All-Cap ETF (NYSEArca: YAO): YAO launched on Oct. 19 (Read about it here)

Max Chen contributed to this article.

According to Gary Gordon for ETF Expert, there is a slight discernible difference between the five largest net exporters and net importers as shown in their respective ETF growths.

Net importers’ five-year total % change:

• Vanguard Total U.S. Market (NYSEArca: VTI): 12.8%
• iShares MSCI United Kingdom (NYSEArca: EWU): 10.7%
• iShares MSCI Spain (NYSEArca: EWP): 91.7%
• iShares MSCI France (NYSEArca: EWQ): 35.1%
• The India Fund (NYSE: IFN): 129.4%

Net exporters’ five-year total % change:

• iShares FTSE China 25 Index (NYSEArca: FXI): 173.9%
• iShares MSCI Germany (NYSEArca: EWG): 53.9%
• Central Europe/Russia Fund (NYSE: CEE): 91.3%
• iShares South Korea (NYSEArca: EWY): 90.5%
• iShares MSCI Netherlands (NYSEArca: EWN): 46.3%

The data shows that percentage gains are leaning toward exporters and developing countries, more export-dependent, are producing larger percentage returns.

Gordon makes the distinction that successful investing in seemingly export-type countries is more dependent on overall economic growth and less to do with the large “net exporter” moniker.

For more information on ETF trends, visit our trend following category. Read more of Gary Gordon’s ETF observations at ETF Expert.

Max Chen contributed to this article.

According to Patricia Oey at Morningstar, China’s Shanghai Composite Index is up 60% year-to-date, the nation is expecting to see GDP grow by 8% and price/earnings ratios for China ETFs are at year-to-date highs, around 18 times trailing 12-month earnings, but still below highs of around 28 times, reached in 2007. (How to play China).

When considering China it’s important to keep in mind both the political and economic risks involved in investing in an emerging market.  With the vast array of ETFs on the market, China is relatively easily accessible. (China in a bubble?)

For more stories on China, visit our China category.

• iShares FTSE/Xinhua China 25 Index (NYSEArca: FXI): up 52.5% year-to-date

• SPDR S&P China (NYSEArca: GXC): up 61% year-to-date; heavily weighted in financials, telecom and energy

• PowerShares Golden Dragon Halter USX China (NYSEArca: PGJ): up 60.7% year-to-date; enables investors to invest in companies listed in the United States

• Claymore/AlphaShares China Small Cap (NYSEArca: HAO): up 91% year-to-date and offers investors fairly balanced sector weightings

• Claymore/AlphaShares China All-Cap ETF (NYSEArca: YAO): YAO launched on Oct. 19 (read about it here)

Kevin Grewal contributed to this article.

The global economic recovery is not yet a firm one, and any poor data from the United States or China might prompt Hong Kong’s investors to forgo risk in favor of safety, remarks Roland Lim for channelnewsasia. Alex Wong, director of Ample Capital, estimates that a 30% correction could occur if there is a flight to safety.

Hong Kong’s Hang Seng Index has jumped about 50% year-to-date, and the index constituents are trading at 18 times price earnings. The 20-year average is 14 to 15 times. According to a study conducted by JP Morgan (NYSE: JPM) Asset Management, ar0und 60% of participants believe the local stock market is still volatile.

Hong Kong Chief Executive Donald Tsang may set out plans to develop additional industries to help Hong Kong diversify from its two major industries, finance and trade, reports Sophie Leung for Bloomberg. New industries could include medical services, education, cultural and creative industries, environmental protection, innovative science and technology, and inspection and certification. (Go here for more stories on the Asian region).

If a market correction occurs in Hong Kong, be sure to have an exit strategy to protect yourself on the downside. The ETF Trend Following Playbook has more on ETF strategy.

For more information on China, visit our China category.

• iShares MSCI Hong Kong Index (NYSEArca: EWH): up 59.1% year-to-date

Max Chen contributed to this article.

Xiong Bilin, a top economic planner, said the growth rate for January-September would be more than 7%. September showed improving trade, housing sales, manufacturing and car sales, reports Elaine Kuternbach for Associated Press. The official numbers will be released tomorrow. China is also on pace to surpass its target growth rate for 2009. (Is China in a bubble?)

Such growth is helping offset falling trade and export numbers, reports Elyse Andrews for Cabot. Other facts continue to support the health of China’s economy, according to The CIA World Factbook:

• The opening of trade routes in the 1970s, and a market-oriented economy has taken China’s growth from a centrally-oriented system to a world power.
• The currency has been tightly linked to the U.S. dollar, however, re-valued currency has taken the renminbi up 2.1% against the dollar.
• In capital terms, the country is still lower-middle income dominated. The government faces challenges to sustain this and keep growth moving in the right direction.

How to play China with ETFs:

• Claymore/AlphaShares China All-Cap (NYSEArca: YAO): Began trading on Monday; the fund had trading volume of more than 1.3 million shares, making it the 11th largest first-day volume for a U.S.-listed ETF ever. (Read more about this ETF).

• Claymore/Alpha Shares China Small Cap (NYSEArca: HAO): up 88.7% year-to-date; small caps tend to do better in a recovery than large caps because they’re more nimble and quicker to react to changing economic conditions. (Read more about small-caps).

• iShares FTSE/Xinhua China 25 Index (NYSEArca: FXI): up 54.2% year-to-date

• SPDR S&P China (NYSEArca: GXC): up 62.5% year-to-date

• PowerShares Golden Dragon Halter USX China (NYSEArca: PGJ): up 64.6% year-to-date

For more stories about China, visit our China category.