BetaShares-Bassanese's Market Insights: RBA to cut to 1.5%, $A heading for US68c
February 17, 2015--Given the Reserve Bank of Australia's demonstrated concern over economic growth, we now expect the Bank to cut the official cash rate to 1.5% p.a. by late 2015.
The next interest rate cut seems likely next month. Together with our view that the United States Federal Reserve will begin raising interest rates by mid-2015-and ongoing likely weakness in commodity prices-we now see the $A falling to US68c by year-end.
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Source: BetaShares
FMC merger with Sebi in phases
Sources say the merger will be announced by finance minister Arun Jaitley in the Budget
February 16, 2015--The government plans to merge commodity market regulator Forward Markets Commission (FMC) with capital markets regulator Securities and Exchange Board of India (Sebi).
According to sources, this will be announced by finance minister Arun Jaitley on February 28 during the Budget but implementation will be lengthy and will most likely happen in phases.
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Source: Business Standard
China forex regulator sees volatile capital flows in 2015
February 15, 2015--China's cross-border capital flows will remain volatile this year amid uncertainties both at home and abroad, the country's forex regulator said on Sunday.
As China gradually moves to make its foreign exchange mechanism more market-oriented, the structure of "trade surplus and capital outflow" will become increasingly normal, the State Administration of Foreign Exchange (SAFE) said in a report.
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Source: xinhuanet.com
Robo advisers booting up in Asia
February 15, 2015--Automated advisory platforms, sometimes called "robo advisers", have already caused a stir in UK and US markets,
and while winning market share in Asia's bank-dominated distribution landscape poses new challenges, some see the rise of robos as inevitable.
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Source: FT.com
Large Inflow In China A Shares ETFs
February 12, 2015--For the week ending February 11, emerging markets dedicated equity funds reported $1.35 billion inflows, the first large weekly inflow since last November.
Within emerging markets, China reported the largest inflows of US$1.62bn this week. Most of that money went into ETF funds that track China's A share market.
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Source: Barron's Asia
Singapore Exchange expands in China, names country chief
February 11, 2015--Singapore Exchange Ltd, which has been struggling to attract large initial public offerings (IPOs), said it is expanding further into China and appointed its listings chief to a new position as the head of its China business.
SGX said in a statement on Wednesday that Lawrence Wong will relocate to China and continue to head the listings business.
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Source: Reuters
BetaShares-Bassanese's Market Insights: the oil price may have bottomed...
February 10, 2015--The sharp decline in oil prices in recent months has been a major surprise for financial markets, with some suggesting it reflects speculation run wild.
This note suggests the contrary-and that the decline in prices clearly reflects the development of a short-term fundamental imbalance between supply and demand-and consequent run up in oil inventories.
With oil prices now low by historic standards, and restoration of better balanced supply and demand conditions likely in coming months, there's a good chance we've already seen the bottom in oil prices-which is consistent with the moderate rebound in prices already evident in recent weeks.
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Source: BetaShares
China Launches First Equity Options, Investors Bet Stock Prices To Rise
February 9, 2015--China launched its first stock options on the Shanghai Stock Exchange on Monday, offering investors a new hedging tool for trading index heavyweights, which regulators long have hoped to boost.
The options are based on the exchange-trade fund (ETF) that tracks the SSE50 index, composed of the 50 most heavily weighted stocks on the bourse.
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Source: International Business Times
TSE-ETF/ETN Monthly Report for Jan 2015
February 6, 2015--Oil ETFs and ETNs Surge Ahead
In January 2015, trading in the ETF/ETN market continued near record highs, with monthly trading value of approximately JPY 3.85 trillion and a daily average of about JPY 203 billion, the second-highest level since November 2014.
The Simplex WTI ETF (1671) grew in trading value and climbed from 18th to 12th overall. Other ETFs and ETNs tracking oil sector indices also saw significant gains.
Inverse ETFs also saw significant activity with Nikkei 225 Bull 2x ETF (1579) and other issues making the monthly rankings.
view the TSE-ETF/ETN Monthly Report for Jan 2015
Source: TSE (Tokyo Stock Exchange)
Offshore yuan bond issuance in HK shrinking for first time
February 5, 2015--Offshore yuan bond issues are set to fall this year for the first time since the Hong Kong market began in 2007 as funding costs have become more expensive than in mainland China.
The dim sum market, as the offshore yuan bond market is known, had expanded rapidly since its inception because borrowers could raise money more cheaply in Hong Kong-a trend that now looks set to end.
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Source: South China Morning Post