Exchange traded funds pegged to the euro and U.S. stocks were set for a lower open Thursday following a disappointing government bond auction in France.
The euro slipped nearly 1% against the dollar to under $1.29.
In premarket trading, SPDR S&P 500 (NYSEArca: SPY) declined 0.7%.
The euro fell to its lowest level versus the U.S. dollar in 16 months as investors continue to fret over Europe’s banks, BBC News reported.
UniCredit and Societe Generale paced the declines in the European financial sector.
Demand in the latest French auction weakened while the country was forced to pay higher rates on 10-year notes.
Separately, a Spanish minister suggested its banks may face a higher bad loan bill, BBC reported.
Here are some of the other top ETF stories making the rounds online this morning:
- Hong Kong approves synthetic ETFs. [Bloomberg]
- Thursday’s ETF to watch: PowerShares DB US Dollar Index Bullish. [ETFdb]
- Investors dumped gold ETF in December. [Index Universe]
- ETF Midweek Peek. [ETF Digest]
- Gold ETFs kick off new year with gains. [Investors Business Daily]
CurrencyShares Euro Trust (NYSEArca: FXE)
Full disclosure: Tom Lydon’s clients own SPY.
Read the disclaimer; Tom Lydon is a board member of the funds for Rydex|SGI.