ETF Trends
ETF Trends

Global equities and commodities exchange traded funds (ETFs) took a step back as weak economic data fueled growing fears of another recession and sent investors back to safe-haven assets.

Global stocks dropped more than 4% and commodities were also dumped on the bleak outlook, reports Wanfeng Zhou for Reuters. The iShares S&P Global 100 Index Fund (NYSEArca: IOO), which tracks a basket of global large-cap stocks, was down 3.31% and the Powershares DB Commodity Index Fund (NYSEArca: DBC) was down 2.57%.

Meanwhile, the U.S. dollar appreciated to a seven-month high against major global currencies, attracting safe-haven investments. The Powershares DB US Dollar Bullish Fund (NYSEArca: UUP) was up 0.82%.

Economic data from China revealed that the country’s manufacturing sector has contracted for the third consecutive month, report Leah Schnurr and Jonathan Cable for Reuters.

In Europe, the Flash Markit Eurozone Services Purchasing Managers’ Index (PMI), a measure of private sector businesses, dropped to a worse-than-expected 49.1 from 51.5 in August while the factory index fell to 48.4, a two year low.

The worldwide data helped emphasize the U.S. Federal Reserve’s warning of “significant downside risks” to the weak economy, and many viewed the central bank’s $400 billion program as an insufficient catalyst for growth.

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