Today will be a light day of trading as most U.S. government offices are closed in observance of Veterans Day. Many exchange traded funds (ETFs) are down in early trading as world leaders work on an agreement to shore up the economic recovery.

At the G20 meeting in Seoul, South Korea, government officials tried to agree on meaningful action to rebuild the global economy as a crisis erupted in Ireland. Investors are concerned about possible criticism from other nations, particularly China, who feel that the U.S. Federal Reserve’s latest quantitative easing program amounts to devaluing the dollar. They are concerned that the dispute could escalate into a currency war as countries try to increase exports by manipulating their currencies lower. PowerShares DB U.S. Dollar Bullish (NYSEArca: UUP) is up 0.6% so far today. [Play the Currency Wars With ETFs.]

The technology sector is being punished after a disappointing forecast from Cisco Inc. (NASDAQ: CSCO). The computer network equipment maker’s shares are off almost 4% in so far today after Chief Executive John Chambers cautioned over “short-term challenges” in Europe and public-sector spending. Traders interpret this news a sign that the fragile economic recovery threatens future corporate profits. Will this be only a short-term blip? Here’s hoping; the tech sector has rallied back with force in recent weeks. Direxion Daily Technology Bear 3X shares ETF (NYSEArca: TYP) is up more than 6% on the reports this morning. [Tech ETFs: 4 Reasons They’re Going Gangbusters.]

Bear Technology ETFs

In the first major slowdown seen in the home foreclosure wave that has lenders on track to reclaim more than 1 million homes this year, foreclosure listing company RealtyTrac Inc. reported a 9% decline in home repossessions from September to October. The primary reason for the large drop is large lenders putting a temporary halt on the bulk of their foreclosures in the face of allegations that the paperwork on thousands of foreclosures has been mishandled. Homebuilder ETFs like SPDR S&P Homebuilder (NYSEArca: XHB) could continue to feel pressure as the situation is worked out; it’s down 0.8% so far this morning. [Homebuilder ETFs Wait on Recovery.]

Homebuilder ETFs, Real Estate ETFs

Gregory A. Clay contributed to this article.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. 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.

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