Energy Underperforming Despite Strength in Crude Oil
11-Feb-13 12:30 ET
[BRIEFING.COM] Recent action has seen the major averages slide back near the middle of the day's range. The S&P 500 is off by 0.1% with the energy space remaining as the biggest laggard. The SPDR Energy Select Sector ETF (XLE 78.19, -0.39) is down 0.5% despite recent strength in crude oil.
The energy component spiked to a session high in the $97.00 area after the president of Germany's Bundesbank, Jens Weidmann, said there is "no indication euro foreign exchange is seriously overvalued." The comments were met with immediate strengthening of the euro which translated into dollar weakness. This contributed to the rise in the dollar-denominated crude oil futures.
As energy stocks underperform, the financial sector remains in the lead. The SPDR Financial Select Sector ETF (XLF 17.68, +0.08) is firmer by 0.5%.