Global ETF News Older than One Year
Macro Matters-Market volatile on mixed economic signals
November 28, 2012--China
Both Hong Kong and China markets ended higher last week due to: 1) speculation the government will lower reserve-requirement ratio; and 2) news that CSRC (China Securities Regulatory Commission) had eased capital requirements for overseas and local investment.
China local market was highly volatile on mixed economic data. Markets once dropped on news that FDI inflow to China had decreased by 3.5% during the past 10-month of the year.
India-Investors remained cautious as Winter Parliament commenced. India market remained volatile last week as investors were cautious amid the start of winter session of the parliament on Thursday.
Indian stocks were boosted throughout the week by: 1) rating upgrades by brokerage firms; 2) hopes of increased sales during the holiday seasons; and 3) expectations of insurance, pension and banking sector liberalization.
Brazil-Policy measures in support of nation’s demand.
October’s unemployment rate was 5.3%, according to IBGE, decreasing from 5.4% in September. The unemployment rate is at historical low as the labor force remained tight. Meanwhile, the Brazilian average real income continued to be at its highest level which is expected to continue over the midterm.
Russia-Global uncertainties continued to persist.
According to the OECD CLI (Composite Leading Indicators), it seems the slowdown trend of OECD economies have subdued.
Recent US economic indicators have posted positive surprises to the markets. The better prints came widespread from consumer confidence to labor data, whilst the housing sector has finally delivered a consistent recovery since 2008.
Source: Mirae Asset Financial Group
EPFR Global Fund Data News Release-No thanks from investors for junk bond and US equity funds in late November
November 27, 2012--Going into the Thanksgiving holiday weekend investors continued bailing out of US Equity and High Yield Bond Funds as US lawmakers addressed themselves to the so-called fiscal cliff that looms in early 2013.
Although China’s improving story attracted some interest --and cash--the week’s biggest inflows were recorded by Money Market Funds, with the cash equivalent vehicles absorbing over $21 billion.
Overall, EPFR Global-tracked Equity Funds posted collective outflows of $7.74 billion during the week ending Nov. 21 while Bond Funds took in a net $4.97 billion.
Despite the hefty inflows recorded by Money Market Funds and the big outflows posted by High Yield Bond Funds, the latest numbers contained some bullish signals. Emerging Markets Bond and Equity Funds both took in over $1 billion while flows into Commodities Sector Funds investing in things other than gold and precious metals hit their highest level since the first week of 2Q11.
Visit http://www.epfr.com/overview.aspx for more info
Source: EPFR
FTSE Launches Super Liquid Index Series
November 27, 2012--FTSE Group ("FTSE"), the award winning global index provider, today announces the launch of the FTSE Super Liquid Index Series (SLQ), a broad family of real-time free float market capitalisation weighted indices designed to mimic the characteristics of key FTSE indices via a smaller, highly liquid universe of stocks.
FTSE Super Liquid indices incorporate a novel methodology to determine the index size and select the most liquid stocks from within each industry of the underlying index. The resulting basket exhibits reduced implementation, maintenance and replication costs, whilst retaining the industry weightings and performance characteristics of the parent index.
The FTSE Super Liquid Index Series has been built to FTSE’s renowned standards of index design, which emphasises transparency, independence, innovation and strong governance.
Source: FTSE
New Finance Models to address Climate Change
The World Economic Forum and UN Climate Change secretariat forge a partnership to showcase new models for financing climate-friendly investments
The partnership, to be launched at the UN Climate Change Conference in Doha,Qatar, will benefit from the insights of the Forum's Green Growth Action Alliance.
November 27, 2012--The World Economic Forum and the United Nations Climate Change secretariat announced today the launch of "Momentum for Change: Innovative Financing for Climate-friendly Investment", an initiative that showcases successful public-private financing mechanisms and approaches to support climate change adaption and mitigation activities.
The initiative will inform governments, investors, business, public finance agencies and the media about practical ways and means to enable a global shift to environmentally and economically sustainable growth. It will be formally launched on 6 December during the United Nations Climate Change Conference, taking place in Doha, Qatar, from 26 November to 7 December.
“It is clear that the private sector needs to deliver significant investments to put the world on a path to a climate-secure future,” said Christiana Figueres, UNFCCC Executive Secretary. “However, given the scale of investment needed, the newness of technology solutions and the perception of risk that exists, the current level of investment is far too low. The public sector can help to unlock private finance and ensure supportive policy frameworks for climate-friendly investment.”
Source: World Economic Forum
Global economy facing hesitant and uneven recovery, says OECD
November 27, 2012--The global economy is expected to make a hesitant and uneven recovery over the coming two years.
Decisive policy action is needed to ensure that stalemate over fiscal policy in the United States and continuing euroarea instability do not plunge the world back into recession, according to the OECD’s latest Economic Outlook.
“The world economy is far from being out of the woods,” OECD Secretary-General Angel Gurría said during the Economic Outlook launch in Paris. “The US ‘fiscal cliff’, if it materialises, could tip an already weak economy into recession, while failure to solve the euro area crisis could lead to a major financial shock and global downturn. Governments must act decisively, using all the tools at their disposal to turn confidence around and boost growth and jobs, in the United States, in Europe, and elsewhere,” Mr Gurría said.
view the OECD economic outlook
Source: OECD
BATS to borrow $300m for dividend payouts
November 27, 2012--BATS Global Markets is looking to raise $300m of "junk"-rated debt to fund a payout to shareholders in its first attempt to tap investors since the exchange operator bungled its own public float in March.
The company, which runs the third-largest US stock-exchange by volume, is seeking to issue a $300m, six-year senior secured loan and open a $50m three-year revolving credit facility.
Source: FT.com
STOXX Changes Composition Of Benchmark Indices-Results Of The Fourth Regular Quarterly Review
To Be Effective On December 24, 2012Q4/2012
November 27, 2012--STOXX Limited, the market-moving provider of innovative, tradable and global index concepts, today announced the new composition of the STOXX Benchmark and their sub-and sector indices, among them the STOXX Europe 600 Index, STOXX North America 600 Index and STOXX Asia/Pacific 600 Index.
Effective as of the open of European markets on December 24, 2012, the following stocks will be added to and deleted from the STOXX Europe 600 Index and its respective size and sector indices:
Source: STOXX
ETF Securities-ETFS Precious Metals Weekly-Silver Industrial Demand Set to Rebound while Gold ETP Holdings Hit Fresh Record as Investors Focus on Near-Term Risks
November 26, 2012--November 26, 2012--Silver industrial demand to rise by 7% in 2013 to record, but investment remains key in 2012. According to the Silver Institute's latest report, industrial demand for silver is expected to rebound in 2013 after losing ground in 2012.
The electronics industry is expected to be the mainstay of industrial demand over the next two years, with growth in emerging Asia the predominant force. China is expected to play catch-up with the US in terms of industrial demand, with the two nations combining to provide over 40% of industrial demand. The forecast gain of around 7% in 2013 is expected to be driven by solid growth in silver oxide catalyst production, while the photovoltaic industry is expected to see growth rebound in 2014. While industrial demand accounts for around 55% of overall silver demand, investment demand has been the main driver of price strength in 2012 thus far. Silver has been the best performing precious metal in 2012, with prices have rising by 20% ytd. At the same time, stocks in COMEX warehouses have risen by 21%, an indication that industrial demand remains soft in 2012. The weakness in industrial demand has been borne out by the Silver Institute's estimated 6% downturn in industrial demand this year.
Central banks accumulate over 40 tonnes of gold bullion as investors push global gold ETP holdings to fresh record. Emerging market central banks are at the vanguard of foreign exchange reserve diversification, accounting for the vast majority of the gold buying in October. Brazil and Kazakhstan were some of the largest contributors to the 9% yoy growth in October, buying 17.2 and 7.5 tonnes, respectively. Investors also continued to buy gold, pushing global ETP holdings to over 83 million ounces last week, a fresh record high. Uncertainty over the outlook for the Eurozone and the precarious position of the US economy approaching the 'fiscal cliff' remain the main risks to the global economic recovery. While the market remains optimistic that Eurozone ministers will come to an agreement to clear the way for the next disbursement of Greek bailout funds when they meet today, further delays are likely to be supportive of defensive assets like gold.
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Source: ETF Securities
Power struggle as regulators turn heat on energy trading
November 26, 2012--Energy markets on both sides of the Atlantic have in the past two months been at the centre of a storm over allegations that participants had manipulated prices in the gas and electricity markets, leading to losses for other counterparties and the publication of inaccurate prices.
In the US, the Federal Energy Regulatory Commission made public allegations on October 31 that Barclays had manipulated prices in the US West Coast electricity market to benefit derivatives positions.
Source: Financial News
Credit Suisse and the great restructuring that wasn't
November 26, 2012--November 20, 2012--All of a sudden UBS is being seen as a visionary organisation that is adapting to the future of investment banking after having waited far too long to bite the bullet and effectively pull out of fixed income.
Its rivals could be forgiven for feeling a little resentful.
Not least Credit Suisse, which last week announced a restructuring that amounted to little more than a management reshuffle.
Source: Financial News
