This week, earnings season continues with a special focus on consumer products and chemical industries, which make up the bulk of the most important reports. This first week of August also looks to be heavy on data from Europe, with several key European companies reporting earnings and the Central Banks of both Great Britain and the Euro zone meeting to discuss rates. The week will end with reports from North America, with both the U.S. and Canada giving their monthly unemployment reports, which should further help to clarify the degree of recovery in the two industrialized economies. Below, we profile three ETFs that look to be in focus over the next several days as the summer earnings season continues [for more ETF ideas, sign up for our free ETF newsletter]:
iShares MSCI Japan Index Fund
Why EWJ Could Be In Focus: The largest component of EWJ, Toyota Motor Corp
Rydex CurrencyShares British Pound Sterling Trust
Why FXB Could Be In Focus: Arguably the weakest major economy in Europe is Britain; the country has a large deficit, high unemployment, weak export prospects, and does not have the support of stronger common currency members. Because of this continued weakness, the Bank of England's August policy meeting looks to be of particular interest to investors. While no analyst (of 43 polled) believes that the bank will raise rates, it will be important to see if Melvin King hints at more quantitative easing measures in order to boost the economy. Many in the BoE policy circles have been talking about the need for more stimulus, saying that the British economy is too weak to stand on its own, and cannot afford austerity at this time. Should the bank signal more easing measures it is likely to be viewed as a pound-negative event which would send shares of FXB sharply lower this week [see British Pound ETFs Continue Slide After Bearish Data Reports].
iShares MSCI Netherlands Index Fund
Why EWN Could Be In Focus: The fund's largest component, Unilever, is scheduled to give its quarterly earnings report on Thursday. The company makes up 17.5% of EWN and is a major bellwether for the consumer products industry because of its spot as the third-largest consumer product company in the world and its ownership of some of the world's most famous brands, including Lipton's teas, Hellman's mayonnaise, and Dove soap, just to name a few. Weakness in its core European markets as well as higher commodity input prices look to drag down the company's results as key ingredients such as sugar and other basic goods have reached new highs in recent weeks. However, the lower euro looks to help to cancel out some of these losses and could push the consumer product giant to growth for the second quarter [also see Netherlands ETF Immune To 'Dutch Disease' Thanks To Euro].
Last Week's ETFs To Watch:
For more ETFs to watch make sure to sign up for our free ETF newsletter.
More from ETFdb.com:
- PowerShares to Reshuffle ETF Indexes
- Smartphone ETF on the Horizon?
- This Week in ETFs: June 25th Edition
Disclosure: No positions at this time.
ETF Database is not an investment advisor, and any content published by ETF Database does not constitute individual investment advice. The opinions offered herein are not personalized recommendations to buy, sell or hold securities. From time to time, issuers of exchange-traded products mentioned herein may place paid advertisements with ETF Database. All content on ETF Database is produced independently of any advertising relationships. Read the full disclaimer here.