Global ETF News Older than One Year
Commodity Supercycle Slows Down in 2012
New Worldwatch Institute study examines the slowdown in the global commodities market
October 1, 2013--Global commodity prices dropped by 6 percent in 2012, a marked change from the dizzying growth during the "commodities supercycle" of 2002-12, when prices surged an average of 9.5 percent a year, or 150 percent over the 10--year period.
This change of pace is largely attributed to China's shift to less commodity-intensive growth. Yet while prices declined overall in 2012, some commodity categories-energy, food, and precious metals-continued their decade-long trend of price increases
The commodities market consists of various raw materials and agricultural products with fluctuating value that are bought and sold in global exchanges. This includes agricultural products, such as corn, wheat, soybeans, and cotton; energy sources, such as crude oil and natural gas; metals used in construction, such as copper and aluminum; and precious metals that are often used for financial security, such as gold, silver, and platinum.
Source: World Watch Institute
EM Suffer on Worries over QE Tapering
October 1, 2013--China
Macro indicators were better than expected.
The Chinese market was very volatile in August, but managed to sustain its upward trend.
While the Chinese market outperformed emerging markets overall, China still posted net outflows from global investors.
Most sectors recorded positive returns, led by materials. On the other hand, underperformers included utilities and health care.
India
India's economy sees a slowing growth.
The MSCI India Index fell sharply in August. Since talk of QE tapering in the US began, chronic problems in the Indian macro economy, including the depreciating rupee, widening current account and fiscal deficits, and rising inflation, have led to increased concern.
The Indian rupee has been among the worst performing currencies of late, depreciating nearly 20% in the last three months; however, losses were pared toward the end of August as the RBI announced a separate foreign exchange window for state-owned oil companies, its latest measure to reduce volatility in the currency market.
ASEAN
Philippines remain the most favorable.
Indonesia's economy continues to suffer from a widening current account deficit and depreciating currency. In the second quarter, the current account deficit expanded to 4.4% of GDP, the highest level since the Asian crisis in 1997.
In Thailand, GDP growth declined to 2.8% year-over-year in the second quarter on the back of flat export growth, slowing consumer spending, and waning government stimulus. Meanwhile, the consumer confidence index declined to 80.3 in July, indicating that consumers are worried about political uncertainty.
In Singapore, inflation continues to inch up on the back of higher food, housing and transportation costs. In Malaysia, inflation also continues on an upward trend, rising to 2.0% year-over-year in July. Meanwhile, second quarter GDP growth came in at 4.3%, up slightly from 4.1% in the first quarter.
Brazil
Brazil's notable growth led to revise its 2013 output upward.
In August, while the local Bovespa index rose 3.7% in local currency terms, the MSCI Brazil Index fell 2.1% in US currency terms as the Brazilian real depreciated sharply against the US dollar.
Profit-taking in anticipation of the US QE tapering has resulted in significant pressure on emerging market currencies, including the real, with the unwinding of cross-border carry trades playing a significant role.
EMEA
Russia outperformed EM overall.
The Russian market outperformed emerging markets overall, due to spiking oil prices caused by rising tensions in the Middle East. Additionally, as Russia remains at a nearly record dis-count to emerging market equities, investors sold off other markets trading at more expensive multiples.
Eastern Europe overall performed in line with emerging markets; however, performance in the region varied.
Poland and the Czech Republic posted positive performance as greater optimism for a European economic recovery lifted both markets.
Source: Mirae Asset Financial Group
IMF's 2013 Annual Report: Promoting a More Secure and Stable Global Economy
October 1, 2013--The global economy is in better shape, but the road to a robust and comprehensive recovery remains bumpy, says IMF Managing Director Christine Lagarde in an introduction to the institution's Annual Report, published today.
The report highlights the IMF's work between May 1, 2012, and April 30, 2013-financial year 2013 for the institution—with an emphasis on the core areas of IMF responsibility: providing IMF member countries with financing for demonstrated needs, assessing their economic and financial policies, and developing their technical capacities.
view the IMF Annual Report 2013: Promoting a More Secure and Stable Global Economy
Source: IMF
FTSE China A-Shares and Global Indices: Adapting the benchmark for international market participants
FTSE is the leading provider of equity indices focused on the Chinese market
Growing investor demand to access one of the world's largest and fastest expanding economies
FTSE to provide a range of transition indices to help managers prepare for the possible inclusion of A-Shares
China 'A' Share remain on watch list for possible inclusion as Secondary Emerging in global benchmark indices
October 1, 2013--FTSE ("FTSE"), the global index provider, today published a research white paper exploring the possibilities for the Chinese investment landscape and how opportunities will change as restrictions on foreign access are relaxed.
Currently, the mainly Hong-Kong listed elements of the Chinese equity market make it the 9th largest represented country in the FTSE All-World Index. Foreign access in China is limited to Qualified Foreign Institutional Investors (QFII) with total investment capped at $150 billion annually. FTSE calculates that the inclusion of China A Shares and the lifting the QFII investment barrier to $500 billion would see the market rise from 9th to 5th largest in the world.
Source: FTSE
New Index Identifies Countries' Ability to Develop and Nurture Human Capital
Switzerland, Finland and Singapore are best at unlocking the economic potential of their people, new Index finds
World's largest economies present mixed picture, with Germany (6) followed by Japan (15), United States (16) and China (43)
Index aims to help countries make the right decisions on investing in the economic potential of their people
October 1, 2013--The World Economic Forum's first Human Capital Index has identified the most successful countries in the world when it comes to maximizing the long-term economic potential of their respective labour forces.
The Index, which measures countries on their ability to develop and deploy healthy, educated and able workers through four distinct pillars:
Education; Health and Wellness; Workforce and Employment; and Enabling Environment, finds Switzerland ranked number one overall, followed by Finland (2) and Singapore (3). Six of the remaining seven countries in the top 10 are in northern Europe, including Germany (6) and the United Kingdom (8).
The Index's 122-country ranking, which forms the basis of the Human Capital report, also finds strong performances from countries in North America, Asia and the Middle East. Canada enters the Index in tenth position, while Japan (15) and the United States (16) are solidly established in the top 20. Qatar, at 18, is the strongest performing economy in the Middle East and North Africa.
view the The World Economic Forum Human Capital Report
Source: The World Economic Forum (WEF)
Average daily volume of 9.1 million contracts at Eurex Group in September
Dividend derivatives with new all-time high in monthly traded volume
October 1, 2013--In September 2013, the international derivatives markets of Eurex Group recorded an average daily volume of 9.1 million contracts (September 2012: 10.2 million). Of those, 6.7 million were Eurex Exchange contracts (September 2012: 7.5 million), and 2.4 million contracts (September 2012: 2.7 million) were traded at the U.S.-based International Securities Exchange (ISE). In total, 140.4 million contracts were traded at Eurex Exchange and 48.1 million at ISE.
At Eurex Exchange, the equity index derivatives segment totaled 61.8 million contracts (September 2012: 68.9 million). The future on the EURO STOXX 50® Index recorded 28.1 million contracts. The options on this blue chip index totaled 20.3 million contracts. Futures on the DAX index recorded 2.4 million contracts while the DAX options reached another 3.6 million contracts. Similar to the same month last year, the Eurex KOSPI Product recorded 1.7 million contracts. Futures on the RDX Index set a new monthly record with around 113,000 contracts; the options totaled 113,000 contracts, its second best monthly volume.
Source: Eurex
IOSCO Review Shows Progress on Implementation of Principles to Identify Risk
September 30, 2013--The International Organization of Securities Commissions (IOSCO) today published the final report on the Thematic Review on the Implementation of Principles 6 and 7 of the IOSCO Objectives and Principles of Securities Regulation (the Review).
IOSCO included Principles 6 and 7 in the IOSCO Principles in 2010 as part of its response to the global financial crisis. The new Principles were intended to address particular concerns that regulatory requirements and frameworks did not adequately address risks posed to securities markets and the need for securities regulators to play a role in addressing systemic risks and maintaining financial stability.
Source: IOSCO
ETF Securities Precious Metals Weekly-Gold in Focus Ahead of US Debt Debate
September 30, 2013--Gold rallies as US government turmoil roils markets. The gold price rebounded at the end of last week as the risks of a temporary US government shutdown rose sharply on continued lack of progress in negotiations between Congressional Republicans and Democrats.
The gold price and US dollar weakness have been given further impetus due to lack of progress over the weekend. The extreme division between the two groups also raises the risk that policy mistakes lead to a possible US debt default as soon as next month if the parties cannot come to a compromise and raise the US government debt ceiling. In this highly uncertain environment the US dollar is likely to remain under pressure and gold and other perceived safe havens well bid. US payrolls on Friday will be watched carefully, with any signs of weakness likely to cause investors to push out the expected timing of Fed tapering, with bullish implications for the gold price.
Source: ETF Securities
IMF-2013 Low-Income Countries Global Risks and Vulnerabilities Report
September 30, 2013--Summary: An assessment of vulnerabilities and risks in LICs remains important both for LICs themselves and for the international community.
There are currently 74 LICs, eligible for concessional financing from the Fund. This group of countries has a total population of about 1.3 billion, with an average per capita income of around $850. They typically face the steepest challenges in meeting the Millennium Development Goals (MDGs) and are increasingly the focus of global development assistance to assist them in this endeavor.
view the IMF 2013 Low-Income Countries Global Risks and Vulnerabilities Report
Source: IMF
IMF releases the new External Debt Statistics: Guide for Compilers and Users jointly produced by TFFS agencies
September 30, 2013--The 2013 External Debt Statistics: Guide for Compilers and Users (2013 EDS Guide) provides comprehensive guidance for measurement, compilation, analytical use, and presentation of external debt statistics.
The 2013 EDS Guide has been prepared under the joint responsibility of the nine organizations of the Inter-Agency Task Force on Finance Statistics (TFFS). This guide updates the 2003 EDS Guide to address the main changes introduced by BPM6.
view the External Debt Statistics: Guide for Compilers and Users (2013 EDS Guide)-Full text
Source: IMF
