Boost -DAX Trade Idea-Has the DAX Rally Stalled?
February 6, 2013--The DAX fell by over 2.4% on Monday to 7638.23, putting strong support at the 7635/7600 area in the spotlight. While the choppy rally since the 2011 lows argues for further gains, the scope of the fall on Monday argues for further corrective losses as the last leg of the rally from 16 November 2012 has been steep
From a pairs or long/short point of view, the FTSE 100 has outperformed the DAX since the start of 2013 (by almost 6 percentage points) and this may continue. Germany faces unique challenges in 2013 which may temper the rally in the DAX from the 05 June 2012 lows, while the UK’s FTSE is benefitting from currency moves and the different mix of shares in the index
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Source: Boost
ETFs and ETPs in Europe reach a new all-time high of $389 billion at the end of January 2013
February 6, 2013--Assets invested in Exchange Traded Funds (ETFs) and Exchange Traded Products (ETPs) listed in Europe reached a new all-time high of $389 billion at the end of January 2013.
ETF and ETP assets have increased by 5.3% from $369 billion to $389 billion during January, according to figures from ETFGI’s monthly European ETF and ETP industry insights.
Market performance contributed to the increase in the value of assets held in ETFs and ETPs as 18 of the top 20 markets globally showed gains in January. Two of the markets with strong gains were the US and the UK where history has shown that a strong January tends to be a good predictor for the rest of the year. A review of history in both markets shows that strong January performance is typically followed by positive returns in the subsequent 11 months.
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Source: ETFGI
Brussels releases early draft of Green Paper on long-term investing
February 6, 2013--The EU may seek preferential treatment for certain types of long-term asset classes in Solvency II and the proposed new solvency rules for occupational pension funds, according to an early draft of the European Commission's Green Paper on long-term investing that IPE has seen.
The paper is set to call for a balance between the need for long-term investment capital on the one hand versus future capital requirements in Solvency II and proposed new rules for IORPS.
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Source: IP&E
State Street initiative to boost ETF trading
February 5, 2013--State Street has launched a free tool for exchange traded funds users in Europe to promote the trading of ETFs between different countries.
Moving exchange traded funds from one country to another in Europe can be extremely challenging and frustrating for traders and investors in the fragmented European ETF market, with investors ultimately paying higher costs.
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Source: FT.com
ESMA publishes responses to consultations on the AIFMD
February 5, 2013--The responses to the consultations on draft RTS on types of AIFMs and on Guidelines on key concepts of AIFMD have been published today
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Source: ESMA
UK Official holdings of international reserves-January 2013
Febraury 5, 2013--In summary this month's release shows that, in January 2013: No intervention operations were undertaken.
Movements in reserves and levels of reserves were as follows:view the UK Official holdings of international reserves-January 2013
Source: HM Treasury
New regulations regarding covered bonds
February 5, 2013--Finansinspektionen is deciding on new regulations and general guidelines regarding covered bonds.
The new regulations and general guidelines will enter into force on 1 July 2013, at which time the current regulations and general guidelines will be repealed.
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Source: Finansinspektionen
UK banks face break-up under new law
February 4, 2013--Britain's biggest banks will face being broken up if they fail to ring-fence their retail and investment arms, under draft legislation set to be announced by finance minister George Osborne on Monday.
The new law will empower the government and a new banking watchdog to "electrify the ring-fence" if banks refuse to separate high-risk operations from savers' deposits.
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Source: FIN24
Turnover at Boerse Stuttgart around EUR 8.7 billion in January
Market conditions improve significantly at the beginning of the year // Strong growth in all asset classes // Turnover in German government bonds ('Bunds') four times higher than in December
February 4, 2013--Boerse Stuttgart generated turnover of just under EUR 8.7 billion in January 2013, according to its order book statistics. Market conditions were considerably improved, with turnover up 58 percent compared with the previous month.
The transaction volume was at the same level as in January 2012.
Securitised derivatives accounted for the largest share of the turnover. Boerse Stuttgart, the largest European stock exchange for structured products, generated turnover of around EUR 3.8 billion in this asset class in January. This represents an increase of around 58 percent in comparison with December. At just under EUR 2.4 billion, trading in investment products accounted for the lion’s share of this turnover. Leverage products accounted for just under EUR 1.4 billion of the total transaction volume.
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Source: Boerse Stuttgart
Russell Eurozone Index Indicates a Dynamic Start for Eurozone Markets YTD as of January 30th
February 1, 2013--Eurozone equity markets have had a dynamic start to the year, showing positive returns year-to-date as of Wednesday 30th January, as reflected by the Russell Eurozone Index returning +4.2%.
In addition, Dynamic-oriented stocks have outperformed Defensive-oriented stocks for this same time period, with the Russell Eurozone Dynamic Index returning 5.1% and the Russell Eurozone Defensive Index returning 3.0%. This follows a similar pattern from 2012, in which the Russell Eurozone Dynamic Index (+21.5%) also outperformed the Russell Eurozone Defensive Index (+15.7%).
Southern European equity markets are showing strong performance year-to-date as of January 30th relative to other country constituents within the Russell Eurozone Index. The Russell Eurozone Index has indicated that country constituents Portugal (+11.7%) has been the top performing country so far in 2013 (as of 1/30/13), followed by Greece (+8.9%) and Italy (+6.8%). Bringing up the rear in the Russell Eurozone Index YTD are Germany (+3.0%), Austria (+2.7%) and Luxembourg (+0.2%).
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Source: Russell Investments
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