Equities resumed their upward trend in the beginning of the week when a wave of upbeat news subdued the market's recent fear of global economic uncertainty. The last two days have seen the S&P 500 set multi-month highs, gold climb past $1,430 an ounce, the Fed hint at yet another round of quantitative easing, and to top it all off, the bulls cheered on the extension of the Bush-era income-tax cuts. However, a stronger dollar and ongoing crises in Europe have managed to tug the markets lower once more, leaving investors with a clouded outlook heading into 2011. With uncertainty still prominent in domestic and foreign markets alike, many have decided to take their investing cues from central banks who have had a reputation for moving the markets in this post-financial crisis world [see also How Investors CAN Play ohe BRIC Through a Different Set of Country ETFs].
Later today, the Reserve Bank of New Zealand is scheduled to release its decision regarding interest rates, with global investors paying close attention to the bank's statement, taking note of any specific comments regarding its outlook on inflation. The Reserve Bank of New Zealand is expected to keep rates unchanged at 3.00% for a third consecutive month as analysts expect the bank to continue its cautious approach, especially given ongoing weakness in the housing market and the private sector, which further justifies the forecast of an unchanged rate. Yet, the possibility of a rate increase is slim nonetheless, given the commodity boom and the recent uptick in retail spending and employment. Fears of inflation are sure to be on the mind of New Zealand policy makers, but sustainable economic recovery likely precedes the need for conservative monetary policy, at least for the time being [see also Are We Out of ETF Ideas? Not by a Long Shot].
With the interest rate decision on the radar screen, today's ETF to watch is the New Zealand Investable Market Index Fund
The fund focuses its assets on the industrial materials (26%), telecom (15%), and financial (12%) sectors. Out of its 25 total holdings, ENZL has 19% in Fletcher Building
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