Exchange traded funds listed in the U.S. that follow European stock indexes were set for a lower open Monday on Greek default worries and after Moody’s put Belgian bank Dexia on review for a potential downgrade.
The iShares MSCI Belgium Investable Market Index Fund (NYSEArca: EWK) has about 1% in Dexia shares. “Dexia has experienced further tightening in its access to market funding,” Moody’s said, according to a Bloomberg report. “Dexia’s collateral postings have increased due to substantial market volatility.”
The Belgium ETF, which holds $25.4 million in assets, is down 14.7% year to date, according to Morningstar.
European stocks were under pressure to start the week after Greece missed goals on cutting its deficit despite austerity measures. [Gold ETFs Rise on Greek Default Worries]
iShares MSCI Belgium
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