Material ETFs Gain on China Optimism
NEW YORK (
) -- Material and mining ETFs are attracting buyers on Monday morning as China is set to replace Japan as the world's second-largest economy. The gains in the sector are helping to offset market weakness following poor manufacturing and housing data.
The
SPDR S&P Metals and Mining ETF
(XME) - Get Report
is rising 1.4%. Its top holdings include
Freeport McMoRan
(FCX) - Get Report
, up 1.4%, and
Cliff Natural Resources
(CLF) - Get Report
, up 2.2%. Other gainers include
Market Vectors Steel ETF
(SLX) - Get Report
and
Market Vectors Coal ETF
(KOL) - Get Report
, rising 1.4% and 1.2% respectively. The PowerShares DBB Base Metals Index, which tracks the price of widely-used base metals such as aluminium, zinc and copper, is gaining 1.3%.
Demand for safe-haven assets continues to rise amid weak market confidence. ETFs investing in treasuries, gold and silver are all up on Monday forenoon trading. Demand for silver ETFs outpaced that of gold, with the
iShares Silver Trust
(SLV) - Get Report
gaining 1.8% while the popular
SPDR Gold Shares
(GLD) - Get Report
is up only 0.8%.
The
SPDR Home Builders ETF
(XHB) - Get Report
and the
iShares Dow Jones US Home Construction
(ITB) - Get Report
is heading lower by 0.7% and 0.2% respectively after the home-builders index fell to a 17-month low.
-- Reported by Shanthi Venkataraman in New York.
Follow TheStreet.com on
and become a fan on
Disclosure: TheStreet's editorial policy prohibits staff editors and reporters from holding positions in any individual stocks.
