Global ETF News Older than One Year
Macro Matters-Poor Global Economic Data Weakens Markets
October 31, 2012--China-Concerns over poor 3Q12 earnings weigh down market.
Hong Kong and Chinese stock markets showed different movement last week. Hong Kong market rose buoyed by expectations of further capital inflows, while China market dropped on concerns over poor corporate earnings.
The China HSBC Flash Manufacturing Purchasing Managers Index rose to a three-month high of 49.1 in October, also registering the most robust orders since April, signaling a strengthening recovery. Nevertheless, though the increased PMI helped to allay investors concerns over a sharp slowdown in the Chinese economy, concerns over lackluster 3Q12 earnings dampened hopes.
India-Better-than-expected earnings offset by concerns over global economy.
Despite better-than-expected earnings reports, Indian markets marginally trended lower as it trailed weak global cues.
Blue chip stocks reported positive September-quarter earnings results. Mahindra, India’s largest tractor producer reported 22% increase in profit. Sterlite, the biggest copper maker, also reported a 74 percent jump in profit while ICICI Bank recorded a net profit growth of 20%.
Brazil-Economic recovery trend expected to be intact.
US employment data and the ISM Manufacturing report will be closely watched, though focus is now firmly on the imminent Presidential elections and the likelihood of avoiding the ‘fiscal cliff’ in 1Q13.
In emerging markets, there are some issues that we need to prepare for the unexpected and worse situation. In Russia, external financing of private companies is increasing.
Russia-External financing of private companies increases.
Strong US housing data boosted global markets, with September housing starts climbing 15% month-on-month on an upwardly revised August number, to reach the highest level since July 2008.
In emerging markets, there are some issues that we need to prepare for the unexpected and worse situation. In Russia, external financing of private companies is increasing.
Source: Mirae Asset Financial Group
Financial Stability Board publishes fourth progress report on implementation of OTC derivatives market reforms
October 31, 2012--The Financial Stability Board (FSB) published today its fourth six-monthly progress report on the implementation of over-the-counter (OTC) derivatives market reforms. The report takes stock of the readiness of market infrastructure across the FSB's member countries to provide clearing services, collect and disseminate trade data and provide organised trading platforms for OTC derivatives.
The report also reviews the progress made by standard-setting bodies and national and regional authorities towards meeting the commitments made by G20 Leaders at the Pittsburgh 2009 Summit that, by end-2012, all standardised OTC derivative contracts be traded on exchanges or electronic trading platforms, where appropriate, and cleared through central counterparties (CCPs); OTC derivative contracts be reported to trade repositories; and non-centrally cleared contracts be subject to higher capital requirements.
The key messages of the report are as follows:
Market infrastructure is in place and can be scaled up. The development of market infrastructure does not appear to be an impediment to further progress in meeting the G20 commitments for OTC derivatives trading, central clearing, and reporting (although regulators should take into account the start-up time for infrastructure to expand their activities and receive regulatory approvals).
view the FSB report-OTC Derivatives Market Reforms Fourth Progress Report on Implementation
Source: FSB (Financial Stability Board)
Hedge Funds Returning to Palladium as ETPs Retreat: Commodities
October 30, 2012--Hedge funds are siding with analysts predicting decade-high palladium prices even as investors cut holdings in exchange-traded products backed by this year's worst-performing precious metal.
The funds’ wagers on a rally more than doubled since August as ETP holdings slumped to a seven-month low this month, data compiled by Bloomberg show. Prices for the metal used mostly in catalytic converters will average $800 an ounce in the third quarter, 34 percent more than now and the highest since 2001, based on the median of 13 analyst estimates.
Source: Bloomberg
Vanguard tipped as Credit Suisse suitor
October 30, 2012--Vanguard has been added to a list of potential bidders that could be poised to acquire Credit Suisse's exchange traded fund business.
BlackRock and State Street – the two largest ETF firms globally – are currently the favourites to snap up the $17bn outfit, which Credit Suisse has put up for sale.
Source: FT.com
Egypt to establish industrial zones in Africa
October 30, 2012--Egypt has unveiled plans to set up two industrial zones in Algeria and Ethiopia, in an effort to boost economic ties with African countries, Ahram has reported.
The Ethiopian government said it would grant Egypt one million square meters of land on which to establish an industrial zone. It also said the Ethiopian banking sector would finance 50-70% of Egyptian investment projects in the country.
Source: AME Info
Basel Committee reports to G20 Finance Ministers and Central Bank Governors on Basel III implementation
October 29, 2012--The Basel Committee on Banking Supervision has today published its Report to G20 Finance Ministers and Central Bank Governors on Basel III implementation by its member jurisdictions.
The report will be considered at the meeting of G20 ministers and governors in Mexico City on 4-5 November.
The report covers all three levels of the Committee's Basel III implementation review programme:
view the Report to G20 Finance Ministers and Central Bank Governors on Basel III implementation
Source: BIS
ETFS Precious Metals Weekly-
October 29, 2012--Precious metals range trade as the market anxiously awaits a bailout request from Spain. Pressure continues to mount on Spain, with unemployment rising to 25% in September, the highest level in Spain's democratic history.
Moody's, the rating agency downgraded five of Spain's regions, citing a deterioration in their liquidity positions. Spanish regional governments account for a third of spending, yet only raise a fifth of the nation's revenue. It is widely expected that Spain will have to ask for a bailout to continue to support its regions, but is delaying this decision to until Catalonian elections take place on 25th November 2012. Once Spain asks for this bailout, the ECB can start buying Spanish bonds, which may help boost sentiment in the Euro, weaken the US dollar and stimulate renewed demand for precious metals, especially gold. For the moment, the elevated net long futures position in gold continues to unwind as investors become impatient with the lack of decisive action from Spain.
Better-than-expected Q3 GDP in UK tempers UK QE outlook. Expectations of further rounds of quantitative easing were tempered as the Governor of the Bank of England commented just days before the release of the GDP data that "loose monetary policy today will eventually give way to a tighter stance of policy as the economy recovers".
Fed remains fully committed to easy monetary policy. Following its policy meeting last week, the Federal Reserve on the reiterated its commitment to undertake additional purchases of MBS if the labour market does not improve substantially. US data has generally been positive: initial jobless claims fell last week to 369k compared to 392k the previous week; new home sales were up by a strong 5.7% month on month; and Q3 GDP growth of 2% annualised was higher than expected. However, the Fed has made it clear that it needs the US recovery to be well underway and employment far higher than it is today before considering ratcheting back its easing policies.
Key events to watch this week: US payrolls data. Given the important role employment data plays in the Fed' policy decision making process, the non-farm payrolls data for October will be closely watched. Revisions to previous month's readings will also be scrutinised in this volatile series. US ISM manufacturing and factory orders along with final manufacturing PMI data will help confirm the strength of the industrial cycle. The market is expecting a 0.4% quarter-on-quarter contraction in Spanish Q3 GDP to be announced this week. A deeper contraction could push the case for more urgency in Spain requesting a bailout.
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Source: ETF Securities
ETFs take centre stage
October 29, 2012--As 2012 draws to a close, the European exchange-traded market is preparing itself for a record year of asset growth, shrugging off the concerns of a slow 2011.
Investors are increasingly applying new ways to use ETFs, are holding them for longer and are treating them more as a core part of their investment portfolios.
This year’s Financial News ETF Snapshot Survey, polling investors in August and September, found market participants more optimistic in their outlook.
Source: Financial News
ETF Securities hires Peter Lidblom as head of Nordics
October 29, 2012--ETF Securities has hired Peter Lidblom as a head of the Nordic region to manage the group's relationships with key financial institutions. He will have a particular focus on Denmark, Sweden, Norway and Finland, reporting to co-head of Emea sales, Isabell Mössler.
Lidblom joins from NSBO, a specialist global institutional broker, where he was responsible for China macro / sector thematic sales to Nordic institutional investors, banks and corporations. More recently he sold ETF best execution services in Europe following a joint venture between NSBO and Wallach Beth Capital in New York.
Source: Global Investor
IOSCO Reviews Implementation of Commodity Derivatives Market Principles
October 29, 2012--The International Organization of Securities Commissions has published today the final report Survey on Implementation of the Principles for the Regulation and Supervision of Commodity Derivatives Markets, which reviews how Market Authorities1 comply with IOSCO's recommendations on commodity derivatives markets.
Results of the survey indicate that the majority of respondents were broadly compliant with the IOSCO Principles on the Regulation and Supervision of Commodity Derivatives Markets, which were published in October 2011 and endorsed by the G20 a month later at its summit in Cannes. Also at Cannes, the G20 Leaders called on IOSCO to report on the implementation of its Principles by the end of 2012.2
Source: IOSCO
