Global ETF News Older than One Year
Global Developments Implications for the Middle East, North Africa, Afghanistan and Pakistan Region
May 2, 2018--Full Text
Global growth continued to strengthen in the second half of 2017 and is now estimated at 3.8 percent for the full year, the highest level since 2011 and 0.2 percentage point stronger than forecast in the October 2017 World Economic Outlook (see table). Growth is projected to strengthen further to 3.9 percent in 2018 and in 2019, also 0.2 percentage point higher than anticipated in October.
Stronger prospects for the euro area should benefit the Middle East, North Africa, Afghanistan, and Pakistan (MENAP) region, especially oil importers, through higher exports. The region should also benefit from a marginal strengthening of the outlook for China, a key partner for the region. However, the global outlook also entails higher global interest rates as monetary policy continues to normalize in advanced economies. This could increase fiscal vulnerabilities and tighten credit conditions in the MENAP region, especially if the risk that global financial conditions tighten more than expected materializes.
Source: IMF
Progress on Global Energy Goals Slow, but Strong Gains in Countries Show Promise
May 2, 2018--The world is not on track to meet the global energy targets for 2030 set as part of the Sustainable Development Goals, but real progress is being made in certain areas-particularly expansion of access to electricity in least developed countries, and industrial energy efficiency, according to a new report from five international agencies.
Renewable energy is making impressive gains in the electricity sector, although these are not being matched in transportation and heating-which together account for 80% of global energy consumption.
view the 2018 SDG7 Tracking: The Energy Progress Report
Source: World Bank
ETF Securities Weekly Flows Analysis-Contrarians appear to sell US Dollar and buy sugar
April 30, 2018--US$6.7mn inflows into short USD long EUR ETPs as investors place contrarian trades.
Gold outflows resumed after two weeks of inflows.
Falling sugar prices draw out potential bargain-hunters.
US$6.7mn inflows into short USD long EUR ETPs as investors place contrarian trades. In a week where US 10-year Treasury yield temporarily rose above 3% for the first time since 2014, which unleashed pent-up US Dollar strength, ETP investors appeared to take on a contrarian trade. The US Dollar basket rose 1.4% with particular strength against the Euro (1.6%). The Euro depreciated the most on Thursday following acknowledgment from the European Central Bank (ECB) that economic data has been weak in the recent past and that economic developments will need to be closely watched during Q2.
Source: etfsecurities.com
SPDR Sector Snap Shot April 2018-SPDR EMEA ETF Strategy Team
April 30, 2018--Global equity markets continued to experience downward pressure in March as the MSCI World Index
fell 2.48%.2 Volatility levels-though off the February peaks-remain at an elevated range from the high teens o the mid-20s.3 Whilst investors appeared to maintain a broadly positive view of risk assets (8 of 11 sectors had positive net flow last month), a closer look showed a clear
preference for safety: the defensive sectors saw the highest positive moves.
The strongest flows in global equities came in the Utilities sector. The March activity was enough to slide overall investor positioning into overweight territory, although the sector remains undervalued in terms of cyclically adjusted PEs. Other undervalued sectors, including Energy, Telecoms and Materials, all saw positive flows. The bulk of outflows were seen in the highly overweight and overvalued cyclical sectors-Technology and Financials.
Source: State Street Global Advisors
DECPG Global Monthly-April 2018
April 30, 2018--Overview
Global growth remains solid but showed signs of moderation in 18Q1, with survey data softening in March in both advanced economies and emerging market and developing economies (EMDEs).
Although the risk of rising trade protectionism weighed on financial market sentiment, financing conditions for EMDEs continue to be broadly supportive.
Geopolitical concerns pushed international Brent oil prices up to $75 per barrel, their highest level since 2014.
Special Focus: Policy options to lift potential growth
Potential growth has declined in EMDEs since the global financial crisis, and, unless resolute policy actions are taken, could continue to deteriorate over the next decade.
Additional investment; improved educational and health outcomes; and labor, product, and governance reforms could help revert the trend and deliver substantial gains in GDP per capita.
Source: World Bank
DECPG Global Weekly
April 27, 2018--TAKING STOCK
U.S. GDP growth decelerated in 18Q1; composite PMI rose at start of Q2
ECB kept policy unchanged; Euro Area composite PMI held steady
Bank of Japan kept interest rates on hold; manufacturing PMI edged up in April
China's household borrowing hit record level in 2017
World Bank forecasts commodity prices to rise in 2018
U.S. GDP growth decelerated in 18Q1; composite PMI rose at start of Q2. U.S. GDP rose 2.3 percent (q/q, saar) in the first quarter of 2018, down from 2.9 percent in 17Q4 (Figure 1). This deceleration reflected weaker consumer spending and exports, which were partially offset by an upturn in business investment.
Source: World Bank
ETF Securities-Commodity Monthly Monitor-Commodities see-saw amidst geopolitics and rising yields
April 27, 2018--Summary
If there has been one theme driving global markets over the past month it has been geopolitical risk. At times, the focus has been on the potential for a trade war, primarily between the U.S. and China, but also potentially touching on adjustments to North American Free Trade Agreement (NAFTA).
Subsequently, the focus has shifted away from trade policy and back towards the powder keg in the Middle East. While Syria is the headline issue, tensions between the U.S. and Russia are the true foundation. Commodities have responded over the month. As of 20th April, the Bloomberg Commodity Index had delivered a Year-To-Date (YTD) total return of approximately 2.4%.
Source: etfsecurities.com
Saudi Arabia Equities Take To The Global Stage
April 25, 2018--FTSE Russell recently announced that Saudi Arabia will be assigned Secondary Emerging market status following the March 2018 interim country classification review.
In 2017, FTSE Russell launched the FTSE Saudi Arabia Inclusion Index Series to meet the needs of global institutional investors seeking access to this growing segment of the market. The Saudi Arabia Inclusion Index Series is designed to measure the performance of Saudi Arabia's equity market as the nation embarks on wide-ranging social and economic reforms as part of the Saudi vision 2030 plan.
Source: FTSE Russell
Private equity funds active in market hit record
April 25, 2018---A high of 2,296 funds operating, according to new report
The number of private equity funds has reached an all-time high as demand from institutional investors for the sector grows in a low interest rate environment, according to a new report.
As of January 2018, a record 2,296 private equity funds were active in the market, seeking to raise an aggregate $744bn, representing a 25 per cent increase compared with a year earlier, the data from the Boston Consulting Group showed. The authors of the report said the increase was being driven partly by ageing founders reluctant to let go of their companies but also growing demand from yield-starved investors for the asset class.
Source: FT.com
ISDA Publishes New Academic Paper on Margin Requirements for Non-cleared Derivatives Market
April 25, 2018--The International Swaps and Derivatives Association, Inc. (ISDA) has published a new academic paper that analyzes the regulatory initial margin framework for the non-cleared derivatives market. The academic paper, sponsored by ISDA, was written by Rama Cont, Chair of Mathematical Finance at Imperial College London.
The paper examines the rationale for the 10-day liquidity horizon applied under the initial margin rules for non-cleared trades, and assesses whether it is appropriate. The 10-day period is double the five days set for cleared trades.
The research argues that using a fixed liquidation horizon of 10 days is not realistic, and does not take the liquidity characteristics of the assets or the size of the position into account. Instead, the paper recommends that the liquidation horizon should depend on the size of the position relative to the market depth of the asset. It also argues that IM should not be based on the exposure of the initial position over the entire liquidation horizon, but on the exposure over the initial period required to set up the hedge, plus the exposure to the hedged position over the remainder of the liquidation horizon.
view the ISDA Margin Requirements for Non-cleared Derivatives paper
Source: ISDA
