The lost over 200 points Tuesday morning on renewed worries over Europe’s debt crisis and after China reported slightly weaker manufacturing data for October.
Exchange traded funds tracking global stocks were primed for a lower open in the U.S. after Greek Prime Minister George Papandreou called a referendum and confidence vote. The move raises the prospect of derailing Europe’s bailout effort and pushing Greece into default, Bloomberg reported.
ETFs pegged to the euro such as CurrencyShares Euro Trust (NYSEArca: FXE) lost more than 1%.
Separately, China said its purchasing managers’ index fell to 50.4 from 51.2 in September.
Stock ETFs were lower Tuesday as the Federal Reserve started its two-day meeting. Chairman Ben Bernanke will hold a press conference Wednesday following the Fed announcement. [Stock ETFs Lower as Markets Eye Fed, ECB, G-20]
Major U.S. equity ETFs such as iShares S&P 500 (NYSEArca: IVV) and SPDR Dow Jones Industrial Average (NYSEArca: DIA) have recently broken above their 200-day moving averages, a key technical level. [S&P 500 ETFs’ Rally Over 200-Day Average Opens Door to Year-End Rally]
Still, stocks were down sharply Tuesday following the previous session’s 276-point Dow decline. [ETFs Start Week in Risk-Off Mood]
SPDR Dow Jones Industrial Average
