World Gold Council-Market Commentary-July 2015
July 23, 2015--On Monday 20th July the gold price fell sharply, dropping 4.3% from its Friday closing price.
This note explains what happened and counters some misconceptions.
Source: World Gold Council
Monetary Policies in Advanced Economies: Good for Them, Good for Others
July 23, 2015--Actions to close output gaps in advanced economies will help other economies too
Emerging markets more resilient than in the past to effects of dollar appreciation
Corporate debt buildup in emerging markets bears watching
Accommodative monetary policies in systemic advanced economies can have a positive impact on economic activity in other countries if they are perceived as good news about growth prospects in advanced economies, according to a new IMF analysis on the "spillover" impact of policies on other economies.
view the IMF 2015 Spillover Report
Source: IMF
Russia, China Deepen Stock Exchange Ties
July 23, 2015--Russia's largest exchange group the Moscow Exchange (MOEX) and the China Financial Futures Exchange (CFFEX) signed an Memorandum of Understanding (MoU) on Thursday that will help further develop financial ties between the countries.
The MoU signed by both exchanges aims to strengthen the bilateral partnership and facilitate the development of both parties through information sharing, reciprocal visits by senior executives, staff exchange, and closer business cooperation in various areas, MOEX said in a statement. The MoU was signed by Zheng Hu, CEO of CFFEX and Alexander Afanasiev, CEO of MOEX.
Source: emergingequity.org
Russia To Launch A Rating Agency By Year End
July 23, 2015--Russia is planning to launch a rating agency by the end of this year. The Central Bank of Russia (CBR) reported, the initial capital would be around $52 million.
The CBR said today in a statement the following:
...credit rating agencies are one of the most important elements of the financial market infrastructure. Their activities must be stable to various factors, including geopolitical risks.
...Russian market needs a strong credit rating agency with a high level of corporate governance and professional competence.
Source: emergingequity.org
Final criteria for identifying "simple, transparent and comparable" securitisations issued by the Basel Committee and IOSCO
July 23, 2015--The Basel Committee on Banking Supervision and the International Organization of Securities Commissions (IOSCO) today released final Criteria for identifying simple, transparent and comparable securitisations. The criteria are available on the websites of the Bank for International Settlements and IOSCO.
The purpose of these criteria is to assist in the financial industry's development of simple, transparent and comparable securitisation structures. They are not intended to serve as a substitute for investors' due diligence.
view the Criteria for identifying simple, transparent and comparable securitisations
Source: BIS
WEF Alternative Investments 2020: An Introduction to Alternative Investments
July 23, 2015--The goal of this report is to provide policymakers, regulators, journalists, and the public with an objective overview of the industry in order to better understand the benefits and risks associated with the industry. We believe this is to be a critically important task, given the industry's increasingly central role in the economy and society and the often polarized debate about alternatives.
Source: WEF (World Economic Forum)
FTSE Russell Announces Launch of FTSE 50% Hedged Index Series
July 22, 2015--Underpins investor demand for more diverse currency index measures
Initially available on FTSE Developed ex-North America, Europe and Japan Indexes
IndexIQ to use as basis for the first suite of 50% currency-neutral hedged ETFs
FTSE Russell, the global index provider, today announced the launch of the FTSE 50% Hedged Index Series, becoming the first index provider to introduce an index series that is 50% hedged to the US dollar. The new suite of international equity benchmarks is designed to help index users evaluate their currency exposures and hedging strategies when investing outside the US.
Source: FTSE
Here's why ETFs are overtaking hedge funds
July 22, 2015--The active versus passive debate just got a new wrinkle, and one analyst thinks he knows why.
Exchange-traded funds, which are the primary vehicle for passive management, now have assets under management greater than hedge funds, according to a count from research firm ETFGI. ETFs primarily follow market indexes, while hedge funds use a mix of strategies to beat those same benchmarks.
Source: CNBC.com
World Gold Council-Investment commentary, looking into H2 2015
July 21, 2015--Despite economic uncertainty in some regions, the gold price declined in the first half of 2015. While puzzling to some investors, this is consistent with market expectations that the risks could be contained.
We believe that the gold price already reflects a possible rate hike later this year and that the US-centred perspective is missing a more comprehensive view of the market.
This latest edition of our Investment Commentary examines gold's year-to-date performance and explores the potential tailwinds and headwinds it may face during H2 2015:
Current market risks seem to be contained to either a sector or a region, but a prolonged environment of low rates has increased risk exposure globally
Volatility in the US stock market remains relatively tame and, historically, these periods are good opportunities for investors to buy portfolio protection
Source: World Gold Council
Eurex expands its dividend index derivatives offering
Introduction of first global STOXX dividend index derivatives/Launch of STOXX Global Select Dividend 100 Index contracts on 20 July
July 20, 2015--The international derivatives marketplace Eurex Exchange, part of Deutsche Börse Group, launched new futures and options based on the STOXX Global Select Dividend 100 Index yesterday.
With this step, Eurex Exchange expands its dividend index product suite, which currently comprises the DivDAX and Euro STOXX Select Dividend 30 indices. Whereas the two existing contracts cover German and European stocks, the STOXX Global Select Dividend 100 Index offers investors the ideal tool to invest into 100 high dividend-yielding companies across developed countries from North America, Europe and Asia/Pacific.
As of June 2015, nearly 1.7 billion euros in assets are invested in ETFs that are based on the STOXX Global Select Dividend 100 Index.
Source: Eurex