Exchange traded funds (ETFs) edged higher at the open on Tuesday as Wall Street extended its advance on strong corporate earnings and more belt-tightening from China.

  • China’s central bank raised interest rates for the second time in just over a month in a bid to dampen high inflation and guide blistering economic growth to a sustainable level. Its last rate hike came on Christmas Day, when the bank raised both benchmark rates by a quarter point. China’s leaders have sought to cool surging inflation that could pose a threat to political stability. iShares FTSE/Xinhua China 25 (NYSEArca: FXI) is up just slightly this morning.
  • Toyota Motor Corp. (NYSE: TM) share rose over 4% on Tuesday after raising its profit and revenue forecasts for the full fiscal year through March, even though a strong yen and weak domestic car sales took a toll on the latest quarter. PowerShares BLDRS Asia 50 (NYSEArca: ADRA) is up 0.3% so far this morning; Toyota is 9.2% of the ETF.
  • Shares of McDonald’s Corp. (NYSE: MCD) are up over 2% on Tuesday after saying global comparable sales increased 5.3% last month. By region, the restaurant chain said comparable sales in the U.S. rose 3.1%, while sales increased 7% in Europe and 5.2% in its and Asia/Pacific, Middle East and Africa business. The PowerShares Dynamic Food & Beverage ETF (NYSEArca: PBJ) is up slightly in early trading; McDonald’s is 4.7%.
  • After weeks of flat performance, gold futures surged to a two-week high on China’s interest-rate moves. ETFS Physical Swiss Gold Shares (NYSEArca: SGOL) is up more than 1% this morning.

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.