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Emerging Markets Week in Review-6/1/2010 - 6/4/2010
June 7, 2010--The Dow Jones Emerging Markets Composite Index slipped 0.44% last week as Hungary joined a growing set of European countries facing mounting fiscal deficits. Consumer Goods and Technology were the best performing sectors last week, up 1.49% and 0.91% respectively, and remain two of the only positive sectors in 2010.
Materials led the decline for the week, down 3.84%, and continues to be one the weakest sectors year to date. Over the weekend, Hungary assured the markets there is no risk of default on their sovereign debt but, broadly speaking, emerging markets continue to be dominated by weaker than expected economic data from the U.S.
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Source: Emerging Global Advisors
S&P Launches Equal Weighted Version of the S&P/TSX 60-Licenses BetaPro to List & Trade an ETF Based Upon the Index
June 7, 2010--Standard & Poor's, the world's leading index provider, announced today that it has launched an equal weighted version of the S&P/TSX 60, the primary large cap benchmark for the Canadian equity market. The S&P/TSX 60 Equal Weight Index has the same constituents as the market capitalization weighted S&P/TSX 60, but each company in the equally weighted version is allocated an equal weight at each quarterly rebalancing.
When compared to its underlying counterpart, the S&P/TSX 60 Equal Weight Index offers higher exposure to relatively smaller companies, lower exposure to larger companies and a different risk/return profile.
S&P Indices also announced today that it has licensed BetaPro Management Inc. ("BetaPro"), to list and trade an ETF based upon the S&P/TSX 60 Equal Weight Index.
"By design, equal weighted indices give greater importance to smaller-cap companies than traditional market-cap weighted indices," says Steve Rive, Managing Director at S&P Indices. "As a result, equal weighted indices will have different risk/return profiles and different sector exposures than their market-cap brethren."
At each quarterly rebalancing, every constituent in the S&P/TSX 60 Equal Weight Index is assigned an equal weight. Between rebalancings, as stock prices move, the respective constituent weightings in the Index will deviate from the equal weight target. While these deviations could be reduced through more frequent rebalancing, the result would be a much higher level of turnover in the index, leading to higher trading costs for index users. Therefore, the Index is rebalanced quarterly to coincide with the quarterly share adjustments of the S&P/TSX 60, which take place after the close of the market on the third Friday of each quarter. Quarterly rebalancing allows the Index to strike an appropriate balance between turnover and the goal of equal weighting.
The S&P/TSX 60 Equal Weight Index is a member of the S&P/TSX Equal Weight Index Series. For more information on the Index, please visit: www.standardandpoors.com/indices.
Source: Standard & Poors
Dow Jones makes changes to Asia Select Dividend 30 Index
June 7, 2010-Dow Jones Indexes has completed its annual and regular quarterly review of the Dow Jones Select Dividend Indexes.
The changes will be effective after the close of trading on 18 June 2010.
In the Dow Jones Asia Select Dividend 30 Index, Daegu Bank will be replaced by Giga-Byte Technology.
The dividend yield of the reconstituted Dow Jones Asia Select Dividend 30 Index will increase to 5.69 per cent from 5.21 per cent as a result of this regular annual review.
There will be no component changes to the Dow Jones Hong Kong Select Dividend 30 Index as a result of this regular annual review. The dividend yield of the index has increased to 4.18 per cent from 4.07 per cent as a result of this regular annual re-weighting.
Treasury Releases New Build America Bonds Data
Build America Bond issuance in the first 12 months of the program will save state and local governments across the country an estimated $12 billion in net present value relative to what they would have paid had they issued tax exempt bonds, according to a Treasury analysis. For example, as of May 31, 2010, issuers in the state of Wisconsin have issued $1.32 billion in Build America Bonds in 95 separate issues – yielding a net present value savings to Wisconsin taxpayers from the Build America Bonds program of approximately $29 million, according to Treasury analysis. view BAB tables Claymore Launches BulletShares: Seven Fund Fixed Income ETF Suite The seven ETFs, which seek to replicate the BulletSharesTM USD Corporate Bond Indices developed by Accretive Asset Management LLC, provide investors with a convenient way to invest in the corporate bond market. The Funds enable advisors to build laddered portfolios in a cost-effective and diversified manner, fill-in gaps of existing bond portfolios, and address investors’ lifestyle needs by providing the potential for cash distributions of income during the life of the ETF and principal at the ETFs’ maturity that can be applied towards retirement, college or other expenses. “The Claymore BulletShares Corporate Bond ETF suite enhances investor access to the investment grade corporate bond market,” commented William Belden, Managing Director, Claymore Securities, Inc. “The Funds consist of comprehensive portfolios of corporate bonds with similar effective maturities. When used individually or in combination, the Funds provide investors the opportunity to structure portfolios of corporate bonds based upon their lifestyle-driven investment needs.” Claymore BulletShares Corporate Bond ETFs offer investors benefits relative to investing in individual corporate bonds and most other fixed income investment products including immediate diversification, exchange-traded liquidity, professional management, and access to corporate bonds that may otherwise be unavailable. As part of an overall portfolio, they enable advisors to invest according to their clients’ specific cash flow needs with effective maturities of the ETFs ranging from 2011 to 2017.
“We are pleased with Claymore’s launch of this suite of products. The BulletSharesTM USD Corporate Bond Indices were designed with investors’ needs in mind.” said Darrin DeCosta, Head of Product Development for Accretive Asset Management LLC. “The indices are constructed through a transparent, rules-based methodology with the goal of building diversified bond portfolios that deliver the best attributes of investments in individual bonds and bond funds.” SEC Statement on Status of Stock-by-Stock Circuit Breaker Rule Proposals DB-Global Equity Index & ETF Research -- Weekly US ETP Market Review
New Listings and Delistings
There was only 1 listing in the previous week. BlackRock launched an ETF tracking the MSCI Poland IMI index on NYSE Arca
Net Cashflows
Equity, Fixed Income and Commodity ETPs had inflows of $1.7 bn, $541 mm and $2.2 bn, respectively. Currency ETPs, on the other hand, experienced outflows of $46 mm.
Within Equity ETPs, Emerging Markets Regional ETPs received the largest inflows ($1.78 bn), while Small Cap ETPs saw the largest outflows ($1.4 bn).
Within Commodity ETPs, Gold ETPs led the inflows with $2.2 bn.
Turnover
Avg. Daily Turnover remained high and increased by 2.6% totaling $116 bn.
Assets Under Management (AUM)
US ETPs AUM rose by 1.6% totaling $799 bn at the end of the week. Equity ETPs account for 73% of the assets with $580 bn, followed by Fixed Income funds with $128 bn and 16% of market share. To request a copy of the report New ETF Weekly options launched at CBOE today, Friday, June 4
New series for Weekly options are listed each Friday and expire the following Friday except that no Weeklys will be listed that would expire during the expiration week for standard options.
Volume in Weeklys has increased since CBOE introduced them in 2005. Average daily volume in SPX Weeklys year-to-date through May was 16,031 contracts or 2.0 percent of standard SPX ADV. Average daily volume for OEX Weeklys for the same period totaled 15,489 contracts or 31.0 percent of standard OEX trading. CFTC.gov Commitments of Traders Reports Update U.S. Department of the Treasury Economic Statistics - Monthly Data Update
Source: Dow Jones Indexes
Recovery Act Bonds Program Provides $106Billion Nationally to Date,
Estimated to Save State and Local Governments Billions Compared to Tax Exempt Bonds
June 7, 2010-- The U.S. Department of the Treasury today released its monthly comprehensive update on Build America Bonds issuances, including state-by-state data, showing $106 billion has been issued through May 31, 2010. Build America Bond issuers benefit from substantial savings in borrowing costs when compared to issuing tax-exempt debt.
"More than $100 billion in Build America Bonds has been issued by a broad range of state and local governments, demonstrating their continued popularity with both issuers and investors," said Alan B. Krueger, Assistant Secretary for Economic Policy and Chief Economist at the Treasury Department. "Build America Bonds have had a very strong reception from state and local governments as a way to provide financing for critical building projects in a way that minimizes costs for taxpayers."
Source: US Department of the Treasury
June 7, 2010--Claymore Securities, Inc. announced today the launch of the Claymore BulletShares Corporate Bond ETFs, a suite of ETFs with designated years of maturity ranging from 2011 through 2017 that invest in investment-grade corporate bonds with effective maturities in the years respective to each Fund.
Claymore BulletShares 2011 Corporate Bond ETF-Fund Ticker:BSCB
Claymore BulletShares 2012 Corporate Bond ETF-Fund Ticker: BSCC
Claymore BulletShares 2013 Corporate Bond ETF-Fund Ticker:BSCD
Claymore BulletShares 2014 Corporate Bond ETF-Fund Ticker:BSCE
Claymore BulletShares 2015 Corporate Bond ETF-Fund Ticker:BSCF
Claymore BulletShares 2016 Corporate Bond ETF-Fund Ticker:BSCG
Claymore BulletShares 2017 Corporate Bond ETF-Fund Ticker:BSCH
Source: Claymore Securities
June 4, 2010--Securities and Exchange Commission spokesman John Nester today issued the following statement:
"Two weeks ago, in response to the market disruption of May 6, the SEC sought public comment on proposed rules that would require the national securities exchanges and FINRA to pause trading in certain individual stocks if the price moves 10 percent or more in a five-minute period. The rules were proposed by the national securities exchanges and FINRA.
"The SEC staff is now reviewing and analyzing the comments that were received over the course of a public comment period that ended yesterday.
"The staff expects to present the proposals to the Commission next week. If approved, the staff anticipates full implementation within a week thereafter."
Source: SEC.gov
June 4, 2010--Highlights
The financial roller coaster triggered by the Greek sovereign debt crisis is still in the middle of the ride. After a steep fall, global markets made a reversal and most of them end up the week with positive returns. The major benchmark in Europe, the Euro Stoxx 50 Index, rose by 1.55% and Gold Spot prices rose by 3.17%, however the relative flat performance of other major markets such as the US (S&P 500, 0.16%) and the Japanese (Nikkei 225, -0.22%) markets, suggests that the impact of the Greek crisis in other major non-European economies is yet to be determined and that measures taken in Europe which have been seen positively by local market participants are not necessarily seen in the same way by other global market players.
Under the current scenario, the overall US ETP market experienced an increase of $12.9 bn in assets, fueled by inflows of $3.8 bn, with Gold and Emerging Markets Regional ETPs leading the flows for the week. Inflows of $1.8 bn into GLD demonstrate that, in spite of high Gold spot prices, investors still believe that the golden metal is the safe haven to dodge the crisis and that Gold ETPs is a good way to gain access to this asset. GLD, with almost $50 bn in assets, is the second largest ETP by assets in the world, only behind SPY, which tracks the S&P 500 Index.
Source: BO-a.Huang-DB Index Research
June 4, 2010--Today CBOE launched trading in Weekly options on four exchange traded funds (ETFs) –
S&P Depositary Receipts (SPY)
iShares Russell 2000 Index Fund (IWM)
Nasdaq-100 Index Tracking Stock (QQQQ)
DIAMONDS Trust, Series 1 (DIA)
Source: CBOE
June 4, 2010--The CFTC.gov Commitments of Traders Reports has been updated. The current reports for the week of June 1, 2010 are now available.
view reports
Source: CFTC.gov
June 4, 2010-The U.S. Department of the Treasury Economic Statistics - Monthly update is now available.
view report
Source: U.S. Department of the Treasury