Global ETF News Older than One Year
ETFS Precious Metals Weekly-US Dollar Strength Pressures Precious Metals
November 3, 2014-Gold hits sell stops below US$1,200/oz. The strengthening US dollar on the back of stronger than expected US Q3 GDP, the announcement by the FOMC of the culmination of QE in the US and surprise announcement of additional stimulus from the Bank of Japan
pressured precious metals last week.
Year-to-date, gold ended the week with a loss of 3.3%. Accentuating the increase in currency volatility, gold in Euro terms ended the week up 6.2% YTD while the US dollar index has gained 8.6% in 2014 (+9.4% since early May). Defensive assets suffer as cyclical equities regain vigour. Defensive assets like gold and closely correlated silver, suffered as US stock prices extended new highs. However, with the most precious metals trading below their all-in costs, further decline in price has to be limited without triggering a cut-back in production.
Source: ETF Securities
China Awards $4.9 Billion RQFII Quota to Qatar, Signs Swap Pact
November 3, 2014--China gave a 30 billion yuan ($4.9 billion) quota to Qatar under the Renminbi Qualified Foreign Institutional Investor program, the first such award of access to its domestic capital markets for a Middle Eastern country.
China's central bank also signed a 35 billion yuan currency swap arrangement with Qatar, the People's Bank of China said in a statement yesterday. The three-year deal can be expanded on agreement by the two sides, it said.
Source: Bloomberg
2014 Legatum Prosperity Index(TM)
November 3, 2014--Now in its eighth year, the Legatum Prosperity Index(TM) is a unique and robust assessment of global wealth and wellbeing, which benchmarks 142 countries around the world in eight distinct sub-indices: Economy; Education; Entrepreneurship & Opportunity; Governance; Health; Personal Freedom; Safety & Security; and Social Capital.
The latest Legatum Prosperity Index(TM) reveals that Norway is the most prosperous country in the world, closely followed by Switzerland and New Zealand. Meanwhile, the least prosperous countries are predominantly found in sub-Saharan Africa, with the Central African Republic bottom of the rankings, followed by Chad and Congo (DR).
Other findings from the 2014 Index include:
New Zealand is the highest climber at 3rd on the Prosperity Index. The resurgence of the economy has seen it rise on the Economy sub-index, from 27th in 2012 to its highest ever rank-15th-in 2014. However, New Zealand's success is also driven by strong personal freedom and social capital. New Zealand is number one on the Personal Freedom sub-index.
view the 2014 Legatum Prosperity Index November 2014 report
Source: Legatum Institute
BATS Global Markets Sets U.S. Equities, Options October Market Share Records; Europe Has Best Month of 2014
21.4% U.S. Equities Market Share; 6.5% U.S. Options Market Share; 22.3% European Equities Market Share
November 3, 2014--BATS Global Markets (BATS) today reported October highlights including new monthly market share records of 21.4% in U.S. equities and 6.5% in U.S. options.
The previous record for U.S. equities was 20.7% in April 2014 and the previous options record was 5.8% in September 2014. October marked the third consecutive month of record market share for BATS Options.
In Europe, BATS reported 22.3% market share, its strongest month in 2014. Notably, total average daily notional value traded was 45.4% higher than in October 2013. Separately, more than €368.0bn was reported to BXTR, the exchange's trade reporting facility.
Source: BATS
Average daily volume of 9.9 million contracts at Eurex Group in October
Volatility and dividend derivatives segments with new monthly volume records
November 3, 2014--In October 2014, the international derivatives markets of Eurex Group recorded an average daily volume of 9.9 million contracts (October 2013: 7.9 million). Of those, 6.6 million were Eurex Exchange contracts (October 2013: 5.1 million), and 3.3 million contracts (October 2013: 2.8 million) were traded at the U.S.-based International Securities Exchange (ISE). In total, 152.7 million contracts were traded at Eurex Exchange and 80.0 million at ISE.
At Eurex Exchange, the equity index derivatives segment totaled 86.4 million contracts (October 2013: 52.9 million). The future on the EURO STOXX 50 Index recorded 34.7 million contracts, the options on this blue chip index totaled 32.4 million contracts. Futures on the DAX index recorded 3.5 million contracts while the DAX options reached another 5.8 million contracts. The Eurex KOSPI Product totaled around 2.6 million contracts.
Source: Eurex
SPDR Weekly Market Report
October 31, 2014--ECONOMIES: The Fed ends asset purchases while the Bank of Japan accelerates them. GDP rises solidly in the US but slips in Canada.
Housing cools in the UK. Inflation may be stabilizing in the Eurozone. Industrial production jumps in Japan. Credit growth accelerates
in Australia.
MARKETS: Risk appetites continue to revive. Equities are broadly higher. G7 government bonds are mixed. USD is generally stronger.
JPY weakens on BoJ easing. Oil and gold prices fall.
NEXT WEEK PREVIEWED
SPOTLIGHT: The Reserve Bank of Australia and the Bank of England should leave administered rates unchanged. The European Central
Bank likely stays the course with its policy accommodation. Employment is expected to rise solidly in the US
THE WEEK IN REVIEW
US
While the ending of asset purchases was entirely as anticipated, the new policy statement of the FEDERAL RESERVE'S
FEDERAL OPEN MARKET COMMITTEE was generally regarded as
more hawkish than its predecessor, leading to a (slight) sell-off
in stocks and bonds and rally in the dollar.
Source: SSgA
DECPG Weekly Economic Brief--Oct. 31, 2014
October 31, 2014--As of October 27, 2014 the total number of Ebola cases was 13,703, with 4,922 deaths. Beyond the terrible toll in human lives, the Ebola outbreak is already having a measurable economic impact on the entire West Africa region.
The number of new cases has been increasing exponentially and current efforts might not yet be sufficient to slow the spread of the epidemic.
A total of 13,703 Ebola cases have been reported in the six affected countries (Guinea, Liberia, Mali, Sierra Leone, Spain and the U.S.) and previously affected countries (Senegal and Nigeria) up to October 27, 2014.
Source: World Bank
Recovery of financial market infrastructures, final report issued by CPMI-IOSCO
October 31, 2014--On Ocyober 15, 20144, The Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) published a report entitled Recovery of financial market infrastructures.
The report provides guidance to financial market infrastructures (FMIs) such as central counterparties (CCPs) on how to develop plans to enable them to recover from threats to their viability and financial strength that might prevent them from continuing to provide critical services to their participants and the markets they serve.
It also provides guidance to relevant authorities in carrying out their responsibilities associated with the development and implementation of recovery plans.
view the Recovery of financial market infrastructures- final report
Source: BIS
First China Onshore Public Index Fund Tracks FTSE China A50
Fund managed by CR Yuanta
Reinforces FTSE's leading position in China-focused benchmarks
October 31, 2014--FTSE Group ("FTSE"), the global index provider, announced today that the FTSE China A50 Index has been selected by CR Yuanta Fund Management ("CR Yuanta") as the benchmark for the first China onshore public index fund.
The new onshore fund will provide institutional investors with a tool to invest in the largest 50 'A' Share companies listed on the Shanghai and Shenzhen stock exchanges. With a strong track record of developing China-focused benchmarks, FTSE is seen as the leading international index provider in the region, offering a range of products for global and domestic participants. In July 2014, ETF assets under management (AUM) tracking FTSE China indices reached over $20 billion for the first time.
More information on FTSE China indices could be found on: http://www.ftse.com/products/indices/china
Source: FTSE
FSB Publishes Global Shadow Banking Monitoring Report 2014
October 30, 2014-- The Financial Stability Board (FSB) is publishing today its fourth annual Global Shadow Banking Monitoring Report. The report presents data as of end-2013 from 25 jurisdictions and the euro area as a whole, covering about 80% of global GDP and 90% of global financial system assets.
The main findings from the report are as follows:
The broadest measure, referred to as the Monitoring Universe of Non-Bank Financial Intermediation (MUNFI), grew by $5 trillion in 2013 to reach $75 trillion. This measure is based on the financial assets of Other Financial Intermediaries (OFIs) and captures all non-bank financial intermediation where shadow banking-related risks to the financial system might potentially arise.
Globally, MUNFI assets represent on average about 25% of total financial assets, roughly half of banking system assets, and 120% of GDP. These ratios have been relatively stable since 2008.
MUNFI assets grew by 7% in 2013 (adjusted for foreign exchange movements), driven in part by a general increase in valuation of global financial markets. In contrast total bank assets were relatively stable. Within the headline global growth figure of MUNFI assets exists considerable differences across jurisdictions and entities.
view the report-Global Shadow Banking Monitoring Report 2014
Source: FSB
