An exchange traded fund for Peru has bounced this week following solid economic data, while rising gold prices may also help the country, a top producer of the precious metal.
Peru’s economy expanded at a rate of 5.33% in June. Although June’s total output was lower than analysts anticipated, strong domestic demand and external demand should continue to drive the economy. This is Peru’s 22nd month of consecutive gains, according to the government, reports Robert Kozak for The Wall Street Journal. [Peru ETF and the Elections]
The iShares MSCI Peru (NYSEArca: EPU) has been volatile after the election of President Ollanta Humala. [Gold Prices Impacting Single-Country ETFs]
“While growth has slowed in recent months, the slowing appears driven by election jitters that hit investment and confidence. With positive initial moves from the administration, investment should begin to rebound,” Morgan Stanley said in a report. [Peru ETF Trends Lower]
Moreover, Peru is responsible for about 6% of world gold production. Peru was one of the best-performing countries after Fed chief Ben Bernanke floated the possibility of QE3 recently, writes Russ Koesterich at the iShares blog.