It seems as though there’s pandemonium all over Europe this morning as rioters protest austerity measures some countries will need to enact. Europe exchange traded funds (ETFs) are falling under the strain.
According to the ETF Dashboard, iShares MSCI Spain (NYSEArca: EWP) is down 1.4% as protesters in the country shut down trains and buses. In Ireland, parliament has been blocked with a cement truck and employees are walking out on their jobs in Greece. [Europe ETFs: Who’s Hot, Who’s Not.]
The riots are in response to a slate of new budget rules proposed by the European Commission to place penalties on countries that let their budgets get away from them. The hope is that it would avert another crisis like the one in Greece. Countries would have to set aside 0.2% of their GDP if debt gets too high. SPDR DJ EURO STOXX 50 (NYSEArca: FEZ) is down 1% this morning. [Safe-Haven Seekers Boost Swiss Franc ETF.]
As investors become convinced that the Federal Reserve will move to stimulate the economy, it’s pressuring the U.S. dollar to its lowest level since the start of the year. The dollar is at its lowest level against the euro since April. PowerShares DB U.S. Dollar Bearish (NYSEArca: UDN) is up 0.1% so far today; in the last month, it’s gained 4.7%. [ETFs to Watch for Quantitative Easing.]
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