Equity exchange traded funds were poised to open sharply higher Monday on solid Black Friday sales and reports Eurozone leaders are working on a closer fiscal pact.
SPDR S&P 500 ETF (NYSEArca: SPY) was up more than 2% in Monday’s premarket following a seven-day losing streak.
Stock ETFs continue to be extremely sensitive to news on Europe’s debt crisis. Leaders are “negotiating a potentially groundbreaking fiscal pact aimed at preventing the currency bloc from fracturing by tethering its members even closer together,” The Wall Street Journal reported Monday.
However, the International Monetary Fund denied a report it was preparing a new financing program for Italy. [Risk Aversion Drives ETF Losing Streak]
U.S. stocks were set to open the week higher after Black Friday retail sales hit a record, rising 6.6% from 2010. Analysts are looking for strong online sales during Cyber Monday.
Precious metal ETFs were also higher. SPDR Gold Shares (NYSEArca: GLD) added nearly 2% in preopen trading while iShares Silver Trust (NYSEArca: SLV) gained almost 3%.