Exchange traded funds that focus on both the United Kingdom and Canada moved into the spotlight Wednesday, as the two nations reported higher monthly inflation figures.
In the U.K., CPI Y/Y inflation levels topped 9.4% compared to the previous months figure of 9.1%. Inflation in the U.K. has now hit its highest point since 1982, a fact that has the Bank of England contemplating a 50-basis point rate hike.
The news put focus on U.K.-centered ETFs, such as the iShares MSCI United Kingdom ETF ( NYSEARCA: EWU ), Franklin FTSE United Kingdom ETF ( NYSEARCA: FLGB ) and the First Trust United Kingdom AlphaDEX Fund ( FKU ).
Year-to-date EWU is -11.4% , FLGB is -13.6% , and FKU is lower by 27.8 % .
On the Canadian front, CPI Y/Y inflation levels ratchetted up to 8.1%, surpassing the previous month figure of 7.7%. Canada’s rising prices have now touched highs that it has not experienced since 1983 even after the Bank of Canada raised rates by a full percentage point earlier this month.
Three ETFs worth examining in relation to the latest CPI print are the iShares MSCI Canada ETF ( NYSEARCA: EWC ), Franklin FTSE Canada ETF ( FLCA ), and the JPMorgan BetaBuilders Canada ETF ( BATS: BBCA ).
In 2022, EWC finds itself -12.8% , FLCA trades lower by 11.7% , and BBCA is -13% .
Daily price action: EWU -0.5% , FLGB -0.7% , FKU -0.6 % , EWC -.03% , FLCA -0.2% , and BBCA is -0.4% .
In broader market news, the major stock averages look for clear direction after a broad-based jump in equities in the previous session.
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Rising inflation figures put U.K. and Canada ETFs in focus