EWU Rises as Bank of England Holds Firm on Interest Rates
The Bank of England’s MPC voted to hold interest rates at 0.5%, which strengthened the pound sterling against the euro and dollar. The EWU rose by 0.89%.
The UK market’s reaction to the ECB’s announcement of its asset-buying plan was reflected in the rise of the iShares MSCI United Kingdom ETF (EWU) on Thursday, September 3.
The UK market experienced a stock rally on Thursday, September 3, over a comment of the ECB Chief Mario Draghi regarding the ECB’s plan to fully implement its asset-buying program.
The iShares MSCI United Kingdom ETF (EWU) returned 3.55% on September 8. Out of its 109 constituent stocks, 102 stocks rose on the day.
Among the component sectors of the iShares MSCI United Kingdom ETF (EWU), the financial sector and the consumer staples sector performed well in the UK market on September 2.
The iShares MSCI United Kingdom ETF (EWU) rose by 1.95% on September 2.
With the economic slowdown, a reduction in imports—especially oil—by China has become inevitable, affecting many of its trading partner countries. Consequently, trades of these countries with the UK may be affected.
Although oil prices rose across the US and the UK markets, along with the US oil inventory’s fall—which greatly benefited the energy sector—EWU dipped on August 31.
September 4 saw rises in none of the 109 constituent stocks of the EWU. The Fed’s rate-hike indecision impacted UK investors.
The stocks at the bottom of the iShares MSCI United Kingdom ETF (EWU) were Fresnillo (FRES), followed by Standard Chartered (STAN), and Randgold Resources (RRS).
The Chinese slowdown has led to a decline in the import of many goods and services. Further, the devaluation of the yuan has made imports very expensive for the country.
China went through many important events recently—like the equity bubble burst, the cut in interest rates, the stock sell-off, and currency devaluation through the first half of 2015.
The iShares MSCI United Kingdom ETF (EWU) was down 3.75% on September 1. The ETF fell for the second consecutive day.
On August 20, the bottom four stocks of the iShares MSCI United Kingdom ETF (EWU) were ICAP (IAP), Prudential Financial (PRU), Hargreaves Lansdown (HRGLF), and Carnival (CUK).
The iShares MSCI United Kingdom ETF (EWU) fell 1.45% as of August 20. Randgold Resources (GOLD) was the top-performing stock of the day, recording a return of 5.79%.
The United Kingdom’s CPI rose to 0.1% in July. But it couldn’t boost the iShares MSCI United Kingdom ETF (EWU) on August 19. The EWU will take some time to revive.
The iShares MSCI United Kingdom ETF (EWU) yielded -1.59% as of August 19. The top-performing stock for the day was the Admiral Group (ADM) at 3.82%.
Despite the volatile environment in several sectors on August 18th, the UK’s inflation rate announcement should impact the stock market and its economy.
Results on August 18 were gloomy for all sectors except Energy and Healthcare. But returns from these sectors look volatile as well.
The euro slid 0.65% to end at $1.0876 on Thursday, July 16. The European Central Bank (or ECB) maintained its zero lower bound interest rate at 0.05%.