ETFs Mixed Following European Gains, Asian Losses | ETF Trends

ETFs are mixed on Monday, following gains in European stocks and losses in Asian markets, as investors looked to extend a three-week rally into this holiday-shortened week.

  • Solid fourth-quarter results should propel equities higher despite their short-term overbought condition, projected one analyst, who said he believes the bull market is likely to continue its run through January. “We are overbought, no question. But it is earnings that move markets, and to that end, we have more fuel for Santa’s sleigh,” wrote Marc Pado, U.S. market strategist at Cantor Fitzgerald. Leading the charge this morning is iShares MSCI ACWI ex-U.S. Consumer Staples (NYSEArca: AXSL), which is up nearly 5%.
  • Asian markets are lower after a volatile session that was dominated by geopolitical tensions on the Korean peninsula. The earlier tumble came on concerns that South Korea’s planned artillery tests in the Yellow Sea would prompt a military reaction from North Korea, escalating tensions in the region. But markets recovered sharply as fears eased in the wake of a CNN report that North Korea was willing to permit U.N. nuclear inspectors to return. The iShares MSCI South Korea Index ETF (NYSEArca: EWY) is up slightly so far today, bucking the Asian downturn.
  • In the retail sector, eBay Inc. (NASDAQ: EBAY) said it will acquire brands4friends, the Berlin online shopping club, for $200 million. In a statement Monday, eBay said the deal would strengthen its position as an online fashion provider in Europe. Despite the deal, First Trust Dow Jones Internet (NYSEArca: FDN) is down nearly 1% this morning; eBay is 6%.

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.