Global ETF News Older than One Year
OECD headline inflation drops to 4.7% in August 2024 as energy inflation declines
October 3, 2024--"Year-on-year inflation in the OECD as measured by the Consumer Price Index (CPI) fell to 4.7% in August 2024 from 5.4% in July.".
Year-on-year inflation in the OECD as measured by the Consumer Price Index (CPI) fell to 4.7% in August 2024 from 5.4% in July. The fall was driven to a large extent by a decline of about 10 percentage points in Turkey inflation, which nevertheless still remained above 50%.
Declines were also observed in 24 of 38 of OECD countries. Excluding Turkey, inflation in the OECD area is estimated to have decreased more moderately, to 2.7% in August from 3.0% in July.
Inflation rose in nine OECD countries and was stable or broadly stable in five. Headline inflation stood at or below 2% in 16 countries in August, while only 9 countries had reached that mark in July.
Year-on-year OECD energy inflation fell significantly to minus 0.1% in August from 3.3% in July, with declines in 31 OECD countries. Year-on-year food inflation and core inflation (inflation less food and energy) declined in the OECD area, mainly due to sharp falls in Türkiye. Core inflation only fell in 9 countries while it rose in 10 and was stable or broadly stable in 19.
In the G7, year-on-year headline inflation eased to 2.4% in August from 2.7% in July, driven by energy prices. Headline inflation fell in all G7 countries except in Japan where it increased, and in the United Kingdom where headline inflation remained stable. Year-on-year headline inflation reached low levels last seen in 2021 in Canada and the United States (lowest level since February 2021), in Germany (since March 2021), and in France (since July 2021). Energy prices fell markedly, while G7 food and core inflation rates were stable.
Source: oecd.org
BIS-Monetary policy in an era of supply headwinds-do the old principles still stand?
October 2, 2024--Adverse supply shocks have played a significant role in the post-pandemic inflation surge, when inflation rates in advanced economies reached levels not seen since the 1970s. The future is likely to bring more volatile inflation due to less elastic supply capacities and more frequent adverse supply shocks, necessitating a re-evaluation of monetary policy principles and frameworks
The traditional approach of "looking through" supply-driven inflation has been based on the transitory nature of such shocks and anchored inflation expectations. However, the recent inflation surge has revealed that risks of inflation de-anchoring can emerge suddenly, and forceful monetary tightening may be required to re-anchor expectations and stabilise inflation. Going forward, more frequent adverse supply shocks mean that central banks must exercise care when assessing if they can look through their inflationary effects.
Source: BiS
WEF-Chief Economists Outlook: September 2024
September 25, 2024--The September 2024 Chief Economists Outlook explores key trends in the global economy, including the latest outlook for growth, inflation, monetary and fiscal policy, the implications of high public debt levels, and the prospects for a new growth agenda.
This latest edition of the Chief Economists Outlook launches amid continuing economic uncertainty. The short-term outlook for the global economy has begun to stabilize, but many vulnerabilities remain.
There are reasons for cautious optimism, notably including a continued gradual easing of inflation rates and a shift to looser monetary policy. However, the prolonged sluggish pace of global growth, compounded by heightened political volatility, leaves many countries vulnerable to economic shocks. Current debt dynamics are undermining government efforts to boost growth and leave countries poorly prepared for the next economic downturn. When it comes to the prospects for a new growth agenda, greater political consensus and international collaboration will be essential to balance the quality and quantity of growth.
Source: World Economic Forum (WEF)
OECD: Global economy is turning the corner as inflation declines and trade growth strengthens
September 25, 2024--The global economy is turning the corner as growth remained resilient through the first half of 2024, with declining inflation, though significant risks remain, according to the OECD's latest Interim Economic Outlook.
With robust growth in trade, improvements in real incomes and a more accommodative monetary policy in many economies, the Outlook projects global growth persevering at 3.2% in 2024 and 2025, after 3.1% in 2023.
Inflation is projected to be back to central bank targets in most G20 economies by the end of 2025. Headline inflation in the G20 economies is projected to ease to 5.4% in 2024 and 3.3% in 2025, down from 6.1% in 2023, with core inflation in the G20 advanced economies easing to 2.7% in 2024 and 2.1% in 2025.
Source: oecd.org
G20 GDP growth remains relatively stable in the second quarter of 2024
September 12, 2024--Gross domestic product (GDP) growth in the G20 area remained relatively stable in Q2 2024, with a 0.7% quarter-on-quarter increase according to provisional estimates, slightly down from 0.8% in the previous quarter (Figure 1).
China, India, and the United States contributed the most to G20's economic growth in Q2 2024, 1 although Brazil and Saudi Arabia saw the highest growth rates (both at 1.4%). Growth in both China and India slowed (from 1.5% to 0.7% and from 1.7% to 1.3%, respectively).
Japan saw a significant recovery, from a 0.6% contraction in Q1 to a 0.7% expansion in Q2, whereas the United States recorded a more modest increase, from 0.4% to 0.7%.
The remaining G20 countries experienced weaker growth than the G20 as a whole, with GDP in Korea and Germany even contracting (by 0.2% and 0.1%, respectively). Growth in Turkey slowed sharply, from 1.4% to 0.1%. France, Italy, and the United Kingdom recorded minor decreases (with growth rates of 0.2%, 0.2% and 0.6% respectively). On the other hand, Canada and Mexico saw small increases (to 0.5% and 0.2%, respectively), while growth picked up in South Africa to 0.4% in Q2, after no growth in Q1. Growth remained stable in Australia at 0.2% and little change was observed in the European Union and the euro area, both zones recording 0.2% in Q2 compared to 0.3% in Q1 2024.
Source: oecd.org
Goods barometer rises above trend, signalling upturn in trade volume
September 4, 2024--Global goods trade has continued to recover in the third quarter of 2024 after demand for traded goods stalled in 2023 amid high inflation and rising interest rates, according to the latest WTO Goods Trade Barometer.
Despite the positive signal from the barometer index, the outlook for trade remains highly uncertain due to rising geopolitical tensions, ongoing regional conflicts, shifting monetary policy in advanced economies and weakening export orders.
The Goods Trade Barometer is a composite leading indicator for world trade, providing real-time information on the trajectory of merchandise trade relative to recent trends. Barometer values greater than 100 are associated with above-trend trade volumes while barometer values less than 100 suggest that goods trade has either fallen below trend or will do so in the near future.
The full Goods Trade Barometer is available here.
Source: World Trade Organization (WTO)
Shenzhen and Dubai Forge Stronger Financial Ties with New Cross-Border ETF Agreement
September 3, 2024--The Shenzhen Stock Exchange and Dubai Financial Market recently signed a memorandum of understanding (MOU) to enhance cross-border investing between China and the United Arab Emirates (UAE), with a focus on exchange-traded funds (ETFs), per reporting by the Financial Times. This partnership marks a significant step in the growing financial relationship between China and the Middle East.
Under the MOU, the two exchanges will collaborate on several initiatives, including dual listings, shared displays of indices, and fixed-income offerings. They aim to facilitate investor access to the secondary markets in both nations. Additionally, the exchanges plan to host joint roadshows, seminars, and training sessions to bolster their capital markets, improve trading opportunities for listed companies, and develop market regulations and environmental, social, and governance (ESG) practices.
Source: middleeastbriefing.com/
WTO launches new interactive tool "World Trade Statistics 2023-Key insights and trends"
July 31, 2024--The WTO issued on 31 July "World Trade Statistics 2023", a new interactive tool presenting key data and trends for international merchandise and commercial services trade in 2023. The digital platform allows users to view the latest trends in world trade, in terms of both value and volume, using filters to display the data by economy, region, selected grouping, product group and services sector.
Among the interactive charts featured are "Growth in merchandise trade value and volume", the "Top 20 exporters in merchandise trade" and "Growth in commercial services". The charts illustrate the evolution of trade while tables in Excel format complement the graphics.
Source: wto.org
IMF-The Global Economy in a Sticky Spot-Global growth broadly unchanged amid persistent services inflation
July 23, 2024--Global growth is projected to be in line with the April 2024 World Economic Outlook (WEO) forecast, at 3.2 percent in 2024 and 3.3 percent in 2025.
Services inflation is holding up progress on disinflation, which is complicating monetary policy normalization.
Upside risks to inflation have thus increased, raising the prospect of higher for even longer interest rates, in the context of escalating trade tensions and increased policy uncertainty.
The policy mix should thus be sequenced carefully to achieve price stability and replenish diminished buffers.
Source: imf.org
ETFGI reports assets invested in the global ETFs industry reached a new record high of 13.14 trillion US Dollars at the end of June
July 17, 2024--ETFGI, a leading independent research and consultancy firm covering trends in the global ETFs ecosystem,reported today the global ETFs industry gathered US$136.17 billion in net inflows in June 2024, bringing year to date net inflows to a record US$730.36 billion, according to ETFGI's June 2024 global ETFs and ETPs industry landscape insights report, the monthly report which is part of an annual paid-for research subscription service. (All dollar values in USD unless otherwise noted)
Highlights
We expect 2024 to be a record year for net inflows and for assets invested in the global ETFs industry
Assets invested in the global ETFs industry reached a new record of $13.14 Tn at the end of June beating the previous record of $12.89 Tn at the end of May 2024.
Assets have increased 12.9% YTD in 2024, going from $11.63 Tn at end of 2023 to $13.14 Tn.
Net inflows of $136.17 Bn during June.
YTD net inflows of $730.36 Bn is the highest on record, while the second highest recorded YTD net inflows was of $658.86 Bn in 2021 and the third highest recorded YTD net inflows of 462.53 Bn in 2022.
61st month of consecutive net inflows.
Source: ETFGI
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