Global ETF News Older than One Year
ETF Securities Research-Precious Metals WeeklyPunchbowl Takeaway Risk Deflates Most Assets-
March 9, 2015--Precious metals (PMs) decline with most asset classes on increased fed tightening fears. Good news for Main Street was bad news for investors as better than expected US
unemployment data bucked the weaker than expected data trend, increasing fed tightening expectations. Only palladium gained on the week, as gold declined 3.9%, giving back its
2015 gain.
Fed funds futures 12-months out, dropped to the lowest level since April 2010, increasing FOMC tightening expectations to about 70bps by the end of March 2016 (chart below). Before Friday's unemployment number, the Citi US Economic Surprise Index reached the lowest level since July of 2012, despite a widely expected boost from lower oil prices. Adding to PM pressure was strength in the US dollar, which reached the highest level since Sept. 2003 (US Dollar Index). Accentuating increasing currency volatility, in Euro currency terms, gold declined only 0.7% last week as ECB QE will commence this week. US QE supported the stock market rally which now appears rather vulnerable. Although gold and silver remain under pressure, they should be primary beneficiaries if stock market volatility continues to normalize, notably if fed rate hike expectations turn out to be a misfire.
Source: ETF Securities Research
UPDATE 1-EU court upholds blocking of Deutsche Boerse/NYSE Euronext merger
March 9, 2015--A European Union court upheld on Monday the European Commission's decision in 2012 to block a planned merger of Deutsche B€erse and NYSE Euronext.
The Commission blocked the deal to create the world's biggest stock exchange because it said it would have created a "near monopoly" in European financial derivatives.
Source: Reuters
NYSE, LSE seen as possible targets for China's Stock Connect
March 9, 2015--Industry experts expect that exchanges in London, New York and elsewhere have been in talks with China about establishing Stock Connect-type trading links.
"I would find it amazing if the [New York Stock Exchange] and [London Stock Exchange] are not way down the line with conversations with China in terms of Connect..
Source: SmartBrief
BlackRock ETP Landscape: February flows surged to $50bn
March 9, 2015--2015 ETP FLOWS OFF TO BEST START EVER AFTER ACCELERATING IN FEBRUARY
Global ETP flows of $50.0bn represented the fourth best month on record and lifted the year-to-date total to $62.3bn, with investors increasingly favoring non-U.S. equity and corporate bonds over relatively safer categories
Pan-European equity exposures brought in a new monthly high of $8.9bn and year-to-date flows have already exceeded the peak from last year, helped by the ECB bond purchase announcement and a weakening euro
Fixed income flows strengthened to $17.8bn led by a new monthly record of $5.2bn for high yield corporate bonds as the search for yield intensified
Source: BlackRock- ETP Research
ETFs: crowd funding
March 9, 2015--If you can't beat them, join them. Exchange traded funds are a growing business and more fund managers want in.
According to ETFGI, a consultancy, ETFs had $2.8tn in assets at the end of January, up by over $1bn since 2010. Worldwide mutual fund assets, by contrast, were $31tn last September; far larger, but up a mere third since the start of the decade...
Source: euro2day.gr
Assets in ETFs/ETPs globally reached a new record high of 2.919 trillion US dollars at the end of February 2015 according to ETFGI
March 9, 2015--Assets invested in ETFs/ETPs globally reached a new record high of US$2.919 trillion at the end of February 2015, according to ETFGI's preliminary monthly ETF and ETP global insight report for February.
March 9th marked the 25th anniversary of the listing of the first ETF in Canada.
ETFs/ETPs listed globally: The global ETF/ETP industry had 5,632 ETFs/ETPs, with 10,902 listings, from 245 providers listed on 63 exchanges in 51 countries. We expect the assets to break through the US$3 trillion milestone in the first half of 2015. There were US$50.7 billion in net new asset (NNA) inflows in February-the second largest NNA month on record.
Source: ETFGI
DECPG Global Weekly-March 6, 2015
March 6, 2015--ECB to begin QE on March 9th as outlook brightens. In line with its quantitative easing (QE) program announced in January, the European Central Bank (ECB) will begin purchasing euro-denominated public sector securities on March 9th,
while continuing the purchase of asset-backed securities and covered bonds that was initiated last year. The combined monthly purchases will amount to &euro60 billion and continue until the end of September 2016, or when there is a sustained
lift in inflation.
Meanwhile, the ECB left interest rates unchanged for a fifth consecutive month and raised the Eurozone growth forecast to 1.5 percent from 1 percent for this year, while that for 2016 was increased to 1.9 percent from 1.5 percent. The harmonized index of consumer prices fell 0.3 percent (y/y) in February, less than the expected fall of 0.5 percent and less than January's 0.6 percent decline.
Gross capital flows to emerging markets have remained robust thus far this year. At US$84 billion, gross capital flows (international bond issuance, equity placements, cross-border syndicated bank loans) to developing countries in the first two months of 2015 were up 12 percent from last year. Bond issuance and equity flows remained strong especially in Asia, reflecting sustained demand for higher-yield debt, relatively low borrowing costs for bonds, and a number of public offerings in China and other East Asian countries.
Source: World Bank
Russell Indexes Demotes Morocco to Frontier Status
March 5, 2015--Russell Indexes, one of the largest providers of indexes for use by exchange traded funds, said it has demoted Morocco to frontier market status from the emerging markets classification.
In terms of market classification, Russell Indexes has determined that Morocco will be reclassified from emerging to frontier market status.
Source: Africaleader.com
ETFS Gold Trust, ETFS Precious Metals Basket Trust & ETFS Asian Gold Trust to Use the LBMA PM Gold Price as Their Benchmark Price Starting March 20, 2015
March 5, 2015--London Gold Market Fixing Ltd. has announced its intention to discontinue the "London Fix" pricing benchmark for Gold after March 19, 2015.
The London Fix has been the "Benchmark Price" for valuation of gold bullion held by each of the ETFS Gold Trust (NYSE Arca:SGOL) (the "Gold Trust"), the ETFS Precious Metals Basket Trust (NYSE Arca:GLTR) (the "Precious Metals Trust"), and the ETFS Asian Gold Trust (NYSE Arca:AGOL) (the "Asian Gold Trust" and together with the Gold Trust and the Precious Metals Trust, the "ETFS Trusts”). The London Bullion Market Association has accepted a proposal by ICE Benchmark Administration ("IBA") to operate a replacement gold price benchmark mechanism. Commencing March 20, 2015, IBA will operate an electronic, tradable and auditable, over-the-counter auction to establish and publish a fixed price for a troy ounce of gold twice each trading day at 10:30 a.m. London time (the "LBMA AM Gold Price") and 3:00 p.m. London time (the "LBMA PM Gold Price”).
Source: ETFS Gold Trust, ETFS Precious Metals Trust & ETFS Asian Gold Trust
BATS Global Markets February 2015 Update: Reports 8.2% U.S. Options Market Share, 20.7% U.S. Equities Market Share, 23.7% European Equities Market Share
Company Also Announced Chris Concannon To Become CEO, Joe Ratterman Chairman
March 5, 2015--BATS Global Markets (BATS) today reported February volume, market share, and monthly highlights including its second best month on record for U.S. Options market share, which was 8.2%, up from 3.6% one year ago.
In the U.S., February market share was 20.7%, up from 20.4% one year ago. Average daily matched volume on the BATS Exchanges was 1.41 billion shares vs 1.43 billion a year ago.
In Europe, BATS Chi-X Europe-the region’s largest equities exchange-reported 23.7% overall market share. Average daily notional value traded was €12.3 billion, up substantially from €8.9bn in February 2014. Year-on-year, market share rose in 14 of the 15 markets BATS Chi-X Europe covers.
BXTR, BATS Chi-X Europe's trade reporting facility, had its second-most successful month ever with more than €369.3bn reported in total during February, an average of €18.5bn each trading day.
Source: BATS Global Markets, Inc.
