Global ETF News Older than One Year
DECPG Global Weekly
May 8, 2015--Taking Stock
The sell-off in Eurozone government bonds continued throughout the week. The yield on German 10-year bunds
jumped as much as 21 basis points (bps) to 0.80 percent Thursday morning before easing to 0.6 percent on Friday.
Similarly, France's 10-year bond yields climbed above 1 percent for the first time since early December, while Italy's 10-year borrowing costs rose to as high as 2.1 percent. The recent volatility in government bond markets has puzzled analysts. Some pointed to the pick-up in inflation in the U.S. and Eurozone, and others suggested that the increased volatility could be due to the fact that yields in European bond markets were reaching unsustainably low levels.
U.S. unemployment rate went down to its lowest level since May 2008, while the trade deficit climbed to its highest level in 6 years. U.S. non-farm payroll employment increased by 223,000 jobs in Aprilm following the downwardly revised 85,000 jobs gained in March. The unemployment rate eased from 5.5 percent in March to 5.4 percent in April, the lowest since May 2008. The trade deficit soared more-than-expected in March, to its highest level since October 2008, partly due to the appreciation of the U.S. dollar (Figure 1). Imports surged 7.7 percent (m/m), while exports rose 0.9 percent
Source: World Bank
BIS Working Paper-Leverage dynamics and the real burden of debt
May 8, 2015--In addition to leverage, the aggregate debt service burden is an important link between financial and real developments. Using US data from 1985 to 2013, we find that it has sizable negative effects on credit and expenditure growth.
Strong interactions between leverage and the debt service burden lead to large and protracted cycles in credit and expenditure that match the stylised facts of credit booms and busts. Even with real-time estimates, the predicted adjustment to leverage and the debt service burden from 2005 onwards imply paths for credit and expenditure that closely match actual developments before and during the Great Recession.
view the BIS Working Paper-Leverage dynamics and the real burden of debt
Source: BIS
Assets in ETFs/ETPs globally reached a new record 2.998 trillion US dollars but fell short of breaking through the 3 trillion milestone at the end of April according to ETFGI
May 8, 2015--Assets in ETFs/ETPs globally reached a new record 2.998 trillion US dollars but fell short of breaking through the 3 trillion milestone at the end of April according to ETFGI's preliminary monthly ETF and ETP global insight report for April 2015.
Our forecast was that assets will break through 3 trillion by the middle of 2015.
Source: ETFGI
UN predicts world food import bill to fall to five-year low, amid hefty commodity supply
May 7, 2015-- A report on agricultural commodity prices released today by the United Nations agricultural agency says that hefty supply levels mean rates will continue to decline despite pressure from a slight reduction in global harvests.
"The world food import bill is forecast to reach a five-year low in 2015,” says Food Outlook, a biannual publication by the UN Food and Agriculture Organization (FAO) focusing on developments affecting global food and feed markets. "Currency movements and macroeconomic developments may have important implications for markets again in 2015-16."
Source: UN
STOXX signs MOU to license smart-beta indices to Mitsubishi UFJ Trust and Banking (MUTB)
May 7, 2015--STOXX Limited, the market-moving provider of innovative, tradable and global index concepts, today announced that it has entered into a memorandum of understanding (MOU) with Mitsubishi UFJ Trust and Banking Corp. (MUTB), the leading Japanese trust bank, to create and market new smart-beta indices.
Under the terms of the agreement, MUTB plans to license a wide variety of STOXX indices-in particular, from STOXX's smart-beta suite- to create investment products to increase its smart-beta offering to retail and institutional clients. STOXX also plans to develop smart-beta indices with support from MUTB.
Source: STOXX
Upcoming Launch of MSCI Saudi Arabia Indexes
May 7, 2015--MSCI Inc. (NYSE: MSCI), a leading provider of research‐based indexes and analytics, is pleased to announce that it plans to launch MSCI Saudi Arabia Indexes as Standalone Market Indexes effective June 1, 2015, coinciding with the expected opening of the Saudi Arabia equity market to foreign direct
investments.
On May 4, 2015, the Saudi Arabia Capital Market Authority (CMA) adopted the "Rules for Qualified Foreign Financial Institutions Investment in Listed Shares" which are expected to become effective on June 1, 2015.
Source: MSCI
BATS Sets Monthly Records in U.S. Options, Europe Trade Reporting;
May 7, 2015--BATS Global Markets (BATS) today reported April volume, market share, and monthly highlights including its best month on record for U.S. Options market share, 9.9%, and second-best month on record for U.S. equities market share, 21.2%.
BATS Options' April 2015 market share rose from 4.2% one year ago and surpassed the previous monthly market share record of 9.4% set in March 2015. Also in the U.S., BATS remained the #1 U.S. market for ETF trading in executing 26.3% of all ETF trading volume.
Why robo-advisors look set for malfunction
May 7, 2015--There has been a lot of noise about the provision of low-cost, automated strategic asset allocation portfolios to retail clients
But the economics doesn't add up, says Morningstar.
