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Easing of Iran Sanctions Weighed on FEZ’s Industries

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Overview of FEZ’s performance on January 15

As we already saw in the previous part of this series, all major global indexes fell on Friday, January 15, 2016, after the UN lifted sanctions on Iran. The SPDR Euro STOXX 50 ETF (FEZ) and the iShares MSCI EMU ETF (EZU) fell 3.3% and 3.5%, respectively, that day. Now let’s look at which industries drove up the performances of these ETFs and which industries dragged them down.

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Apparel and beverage industry contributed marginally

The apparel industry rose 0.3% on Friday, January 15, 2016. LVMH Moët Hennessy Louis Vuitton (LVMUY) returned 0.3% that day. The beverage industry contributed 0.23% on Friday, with Anheuser-Busch Inbev (BUD) returning 0.23%.

Auto manufacturer industry, the biggest loser

The auto manufacturing industry contributed the highest negative return of -4.6% on Friday, January 15. Auto manufacturing stocks for Volkswagen (VLKAY), BMW, and Daimler (DDAIF) returned -5.1%, -4.6%, and -4.1%, respectively, that day. The drastic fall in the auto manufacturing industry is due to the global sell-off.

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Semiconductor industry

The semiconductor industry contributed the second-highest negative return of -4.5% on Friday, January 15. Semiconductor stock for ASML Holding (ASML) returned -4.5% that day.

Oil and gas industry

The oil and gas industry fell 3.8% on Friday, January 15, due to new lows in crude oil. As we’ve already seen, because of the easing of international sanctions on Iran, crude oil hit new lows in the global market. Oil and gas stocks such as Total (TOT), Eni SpA (EAA), and Repsol fell 3%, 3.5%, and 4.8%, respectively, that day.

In the next part of this series, we’ll look at the performance of FEZ’s bottom stocks on January 15, 2016.

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