Global ETF News Older than One Year
That Russelling is the sound of indices being realigned
Annual recasting of listings has traders scrambling to keep up with-and game-the market
June 26, 2015--As I write this, in New York on the morning of Friday June 26, stock market traders are locked in to what they know will be the heaviest trading day of the year.
The headlines as US equity traders reached their desks-horrific terrorist attacks with high death tolls across the world, another cliffhanger in the Greek debt negotiations and a 7 per cent fall for Shanghai stocks bringing China into a bear market-might be enough to force a bad day on the stock market.
Source:FT.com
The BIS on ETFs and bond market liquidity
June 26, 2015--The latest BIS Annual Report,released on Sunday, cites numerous concerns about the unseen damage being caused to financial stability on account of ultra-low interest rates.
Key among those concerns: how liquidity-guaranteeing ETFs in the bond sector may be contributing to a global liquidity illusion, disguising the true state of the ability to trade positions on the bond market...
Source: FT.com
Renaissance Capital's 2Q 2015 Global IPO Quarterly Review
June 26, 2015--Analyst IPO Blog
Following a seasonally calm start to the year, global IPO issuance improved in the second quarter of 2015. Quarterly proceeds increased 29% from the first quarter to $46.6 billion, but still remained down 24% from last year's levels.
IPO proceeds in the 2Q15 were dominated by the Asia Pacific region, which accounted for 47% of quarterly proceeds. Asian proceeds were boosted by the listings of large, multi-billion-dollar Chinese brokerage firm IPOs. Europe and North America struggled to reach even half of the IPO proceeds raised last year as Greek debt-related market volatility in the Eurozone and an absence of large Technology and Energy IPOs in the United States weighed on the regions' totals.
Source: Renaissance Capital
DGCX-Middle-Earth: Greece Failed to Reach an Agreement, EU Leaders to Meet Again on Saturday
June 26, 2015--MARKET PULSE:
Asian equities plunged as Greece failed again to reach an agreement with its creditors.
EU Official : Eurogroup will reconvene on Greece on Saturday morning
IMF says Greece must implement reforms before talks on debt; On June 30 deadline, says IMF doesn't extend deadlines as a matter of policy
U.S. consumer spending recorded its largest increase in nearly six years in May, Purchases increased 0.9% vs 0.7% expected
Euro drifts in a thin range as markets await Greek outcome
The economic outlook depends to a great extent on global economic developments says Thomas Jordan, Chairman SNB: The Swiss franc is currently significantly overvalued
Source: DGCX
DECPG Global Weekly
June 26, 2015--Taking Stock
U.S. economy in Q1 contracted less than previously estimated, while consumer spending climbed the most in
six years in May. U.S. GDP contracted 0.2 percent (q/q saar) in Q1, less than the 0.7 percent decline previously
reported.
The upward revision was driven by stronger personal consumption, investment, and exports. Meanwhile, consumer spending jumped 0.9 percent in May, more than expected, following a revised 0.1 increase in April, reflecting in part the effects of lower gasoline prices and an improving labor market. Separately, the flash Markit manufacturing Purchasing Managers Index (PMI) for the U.S. fell to 53.4 in June, the lowest since October 2013, from 54 in May. A reading above 50 denotes expansion.
Eurozone PMI hit a four-year high in June. The flash estimate of the Markit Eurozone composite PMI reached 54.1 in June, a 49-month high, up from 53.6 in May. The latest reading was underpinned by improvements in both manufacturing and services sectors.
Source: World Bank
IMF Working paper-Does Easing Monetary Policy Increase Financial Instability?
June 26, 2015--Summary: This paper develops a model featuring both a macroeconomic and a financial friction that speaks to the interaction between monetary and macro-prudential policies. There are two main results. First, real interest rate rigidities in a monopolistic banking system have an asymmetric impact on financial stability: they increase the probability of a financial crisis (relative to the case of flexible interest rate) in response to contractionary shocks to the economy, while they act as automatic macro-prudential stabilizers in response to expansionary shocks.
Second, when the interest rate is the only available policy instrument, a monetary authority subject to the same constraints as private agents cannot always achieve a (constrained) efficient allocation and faces a trade-off between macroeconomic and financial stability in response to contractionary shocks. An implication of our analysis is that the weak link in the U.S. policy framework in the run up to the Global Recession was not excessively lax monetary policy after 2002, but rather the absence of an effective regulatory framework aimed at preserving financial stability.
view the IMF Working paper-Does Easing Monetary Policy Increase Financial Instability?
Source: IMF
Shanghai Gold Exchange in Talks With CME to List Contracts
June 25, 2015--The Shanghai Gold Exchange is in discussions with the CME Group Inc. about listing each other's contracts on their respective exchanges, according to Shen Gang, vice president of the SGE.
The Shanghai gold bourse will list contracts and prices on the CME in the first phase of the cooperation, Shen said Thursday at a conference in Shanghai.
Source: Bloomberg
IMF Work Agenda Aims to Lift Global Growth, Address New Risks
June 25, 2015--Fostering global growth-both actual and potential-is a key priority
Addressing financial stability risks remains important challenge
Agenda stresses multilateral cooperation on cross-cutting issues
The IMF has published a new work program that aims to diminish risks and tackle emerging global challenges to help bolster actual and potential growth.
Source: IMF
IMF Working paper-Estimation and out-of-sample Prediction of Sudden Stops:Do Regions of Emerging Markets Behave Differently from Each Other?
June 25, 2015--Summary: We identify episodes of sudden stops in emerging economies and estimate the probability to observe them. Sudden stops are more likely when global growth falters, risk aversion in financial markets rises, and vulnerabilities in the external and financial sectors increase.
However, the significance of the explanatory variables vary across regions. In Latin America and Eastern Europe, gross capital inflows are more responsive to changes in global growth than in Asia. Trade linkages tend to be more important than financial linkages in Eastern Europe, while in Asia and Latin America the opposite is true. The model captures only a third of sudden stops outside the estimation sample, but issues reliable sudden stop signals.
Source: IMF
Infographic: Development Solutions for Disaster Risk Finance
June 25, 2015--This infographic gives an overview of the high cost of disasters on national and local governments, businesses and households- including farmers, herders, homeowners- and the most vulnerable.
It also highlights solutions that have been implemented in several regions with support of the Disaster Risk Financing and Insurance (DRFI) Program, a partnership of the World Bank Group and the Global Facility for Disaster reduction and Recovery (GFDRR). view infographic
Source: World Bank
