Stocks and exchange traded funds(ETFs) remain unsettled early today as a result of the continued struggles of the euro. As the European currency reaches a new record low, fears of a snowball effect in the continent’s economic recovery intensify. Despite market fluctuations, the U. S. dollar rose against all major currencies except the yen.
Stocks have gained slightly in early Monday trading in spite of the euro’s early morning dip to a four-year low, reaching $1.2235. Investors’ struggles with long term effects of severe budget cuts in countries like Greece, Spain, and Portugal, and mixed U. S. earnings reports have continued to limit any big market gains.
- CurrencyShares Euro Trust (NYSEArca: FXE)
Despite slowly rebounding from a four-year low, euro woes continue to spread as the European debt crisis casts its shadow over China. The remnimbi, or yuan has gained 14.5% against the euro over the past four months, causing the cost pressure on Chinese exporters to increase, which has led to a negative impact on exports into Europe, which is China’s largest market. As the euro continues to struggle, Chinese companies become less competitive, which in turn complicates any move by Chinese policy makers to break the yuan’s peg to dollar. [China ETFs Facing a Host of Challenges]
- iShares FTSE/Xinhua China 25 Index (NYSEArca: FXI)
General Motors posted its first profit in three years at $865 million. Revenue was up 40% at $31.5 billion, with positive cash flow of $1 billion, all signs that the company is on track to go public again as soon as the fourth quarter.
“Aaron Hurst contributed to this article.”
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Mr. Lydon serves as an independent trustee of certain mutual funds and ETFs that are managed by Guggenheim Investments; however, any opinions or forecasts expressed herein are solely those of Mr. Lydon and not those of Guggenheim Funds, Guggenheim Investments, Guggenheim Specialized Products, LLC or any of their affiliates. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.