China’s Stimulus Plan could drive pulling back in metal and basic material ETFs

China bailout to its industries and consumers will prevent the economic slowdown and maintain the annual growth. That means China’s industries demand to raw materials will sustain. I see it will be positive to the following ETF sectors, chart courtesy of Stockchart (click the image to enlarge):

PowerShares DB Base Metals Fund (DBB) closed down -0.28 (-2.00%) to $13.72 last Friday.


Market Vectors-Coal ETF (KOL) closed up +0.67 (4.37%) to $16.01 last Friday.


Materials SPDR ETF (XLB) closed up +0.40 (1.63%) to $24.87 last Friday.


SPDR S&P Metals and Mining ETF (XME) closed up +0.79 (2.96%) to $27.49 last Friday.


Related Posts :

China announced $586 billion stimulus package to tackle the economic slowdown (Update 1)

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