Global ETF News Older than One Year
ETF Securities- Research Update-What Will Drive the Next Leg of the Gold Bull Market?
September 6, 2012--Since mid-July the gold price has rallied strongly, but remains 11% below the peak of USD$1900/oz. achieved in September 2011.
European financial and economic turmoil continues to plague financial markets, yet officials have so far failed to find a comprehensive plan to solve the root causes of the crisis. Europe remains mired in deep recession, the US economy appears to have stalled, while Asian emerging market growth has slowed. In this environment most "safe haven" assets have performed well, with G-3 bond yields falling to all-time lows earlier this year. Prior to August, the stand-out exception was gold, which had performed relatively poorly in 2012. Gold's modest performance in an environment of high sovereign risk caused some investors to question its historic "store of value" credentials. In this note we look at some of the key factors that traditionally drive gold price performance, explain what has been behind the performance of the gold price so far this year, and assess the outlook and likely key catalysts for gold price performance for the rest of 2012 and into 2013.
visit www.etfsecurities.com for more info
Source: ETF Securities
Economy: European recession slowing global economy, says OECD
September 6, 2012--The global economy is slowing, with key European countries entering a recession that is now having an impact worldwide, the OECD said in its latest Interim Economic Assessment.
The Assessment, presented in Paris by Chief Economist Pier Carlo Padoan, says that the G7 economies are expected to grow at an annualised rate of just 0.3 percent in the third quarter of 2012 and 1.1 percent in the fourth. It warns that the continuing euro area crisis is dampening global confidence, weakening trade and employment and slowing economic growth for OECD and non-OECD countries alike (See the Chief Economist’s presentation).
“Our forecast shows that the economic outlook has weakened significantly since last spring,” Mr Padoan said. “The slowdown will persist if leaders fail to address the main cause of this deterioration, which is the continuing crisis in the euro area.”
view the OECD What is the near-term global economic outlook?- An interim assessment
Source: OECD
BATS Global Markets Achieves New U.S. Equities Market Share Record-12.8%; Sets Numerous European Records
U.S. Options Market Share at 3.7%; BATS Chi-X Europe Remains Largest Pan-European Market
September 6, 2012--BATS Global Markets (BATS), a leading operator of securities markets in the U.S. and Europe, today reported August U.S. equities market share of 12.8%, the best monthly market share performance in the company's six-year history.
Much of the growth was driven by the company's BYX Exchange, which set a monthly market share record of 3.7% less than two years since its October 2010 inception.
"Our strong momentum continued in August with the best U.S. equities monthly market share performance in our six-year history," said President and Chief Executive Joe Ratterman. "We also witnessed further success in our options business and new record market share in Copenhagen, Frankfurt and Vienna.
Source: BATS Global Markets
Macro Matters-Focus on Macroeconomic Indicators and Potential Stimulus
September 5, 2012--China
Stock markets dropped for four straight weeks.
Hong Kong and Chinese stock markets both dropped for four weeks.
After China's disappointing HSBC preliminary PMI data, market was hit again as profits of major industrial firms or those with annual revenues slipped. In addition, market dropped after PBoC surveyed demand for a new long-term money market instrument, suggesting it remained reluctant to resort to blunter policy measures such as reducing bank reserve requirements.
India
Market slipped on economic growth concerns.
Indian market trended lower last week on worries over economic growth. Concerns over economic outlook weighed down markets as a mix of slow growth, sticky inflation and delayed policy reforms remain as main risk of India.
Gross Domestic Product (GDP) for the April-June quarter grew at better-than-expected 5.5%, after eight successive quarters of declining growth. However, the slight improvement in the figure failed to enthuse the market.
Brazil
Central Bank cut Selic Rate for ninth time.
The Brazilian Central Bank (BCB) cut the Selic rate by 50 bps during its August Copom Meeting, to 7.50%. The rate cut decision was expected by most of the market economists.
In fact, there were no surprises because the Brazilian Monetary Authority changed its post meeting communique to a more “parsimonious” version.
Russia
Focus on the economic activity data and potential stimulus.
After uneventful speech by Fed Chairman Bernanke’s at Jackson Hole, markets will continue to pay attention to economic activity data and potential stimulus.
Though no concrete measures have yet been implemented, the Fed remains ready to act in the event of a continued stagnation in economic data, with QE3 the most likely option, via large scale bond purchases
Source: Mirae Asset Financial Group
DCGX Academy:DAWN : US enemployment>8%,43M, US/EU manu falls, China PMI falls, INR falls 17.7% Gold duty 7.5%
September 5, 2012-COMMODITIES
Bullion Industry Says India May Raise Import Tax to Cut Deficit
Gold Drops From Five-Month High Before ECB Meeting; Silver Falls
Oil Trades Near Lowest in a Week as U.S. Manufacturing Contracts
Gold Holdings Signal Prices Surging to $1,900:
INDIA may raise GOLD DUTY to 7.5 to rein in fiscal deficit
GOLD
Gold declined for the first time in four days as a rally to the highest level in more than five months prompted sales before the ECB meet. , Spot Gold lost 0.3 % and was at $1,690.40 , trading at $1,692.57 in Asian Hours . Gold reached $1,699.05 yesterday, the most expensive since March 13. Gold also fell as the euro weakened against the USD for a second day before data forecast to show retail sales declined and services contracted in the euro area.
Forecast : U.S. payrolls grew at a slower pace last month and unemployment exceeded 8 % for a 43rd month,. Gold almost doubled from December 2008 to June 2011 after the Fed bought $2.3 trillion of debt in two rounds of quantitative easing.
Source: DGCX Academy
Persisting Divides in Global Competitiveness as Switzerland, Singapore and Finland Top Competitiveness Rankings in 2012
September 5, 2012--Competitiveness gap widening among European countries
US remains world's innovation powerhouse despite decline in overall ranking
People's Republic of China most competitive among large emerging markets;
India, Russia fall
Switzerland, for the fourth consecutive year, tops the overall rankings in The Global Competitiveness Report 2012-2013, released today by the World Economic Forum. Singapore remains in second position and Finland in third position, overtaking Sweden (4th). These and other Northern and Western European countries dominate the top 10 with the Netherlands (5th), Germany (6th) and United Kingdom (8th). The United States (7th), Hong Kong (9th) and Japan (10th) complete the ranking of the top 10 most competitive economies
The large emerging market economies (BRICS) display different performances. Despite a slight decline in the rankings of three places, the People’s Republic of China (29th) continues to lead the group. Of the others, only Brazil (48th) moves up this year, with South Africa (52nd), India (59th) and Russia (67th) experiencing small declines in rankings.Despite growing its overall competitiveness score, the United States continues its decline for the fourth year in a row, falling two more places to seventh position.
view the Global Competitiveness Report 2012-2013
Source: World Economic Forum
ETFS Precious Metals Weekly:Precious Metals Rally as Bernanke Hints at Stimulus Potential in Jackson Hole
September 4, 2012--Gold surges as Fed Chairman won't rule out use of further
'nontraditional policies'. The fallout from the Jackson Hole central bank
convention will likely remain the near term determinant of precious metals
prices, as investors weigh up the potential for further monetary easing from the US Federal Reserve.
The expectation that Fed Chairman Bernanke would deliver a QE3 bombshell in similar fashion to previous years were dashed, but investors were heartened by the Fed’s willingness to introduce additional unconventional policy if warranted by a faltering US economy..
Global gold ETP holdings have continued to set fresh record highs as a result of the optimism over additional central bank stimulus, with the much awaited ECB meeting this week. Whether the ECB is closer to a new round of stimulus remains critical, especially in the wake of Spain’s decision to delay a formal bailout request last week. Central bank gold buying led by emerging markets again in July. The latest figures released by the IMF last week showed that central banks continue to help fill the breech left by private physical demand. Emerging market holdings of gold as a percentage of foreign reserves are very low, as can be seen in the chart below. In July, Russia bought nearly 19 tonnes, taking its holdings to nearly 10% as a proportion of foreign reserves. Kazakhstan and the Ukraine also added gold to their portfolios, with 1.4 tonnes and 0.2 tonnes, respectively.
South African labour unrest keeps platinum supported, and contagion threatens gold production.
visit www.etfsecurities.com for more info
The Options Industry Council Announces Options Trading Volume Remains On Track For Second Best Year After August Decline
September 4, 2012--The Options Industry Council (OIC) announced today that 310,936,920 total options contracts were traded in August.
This is 43.47 percent less than the all-time monthly volume record of 550,049,407 contracts traded in August 2011.
August is traditionally one of the lower volume months of any year, and last month was the lowest monthly volume recorded in 2012. However, it was the best August volume total outside of the August 2011 volume record. August also marked the 24th consecutive month the options industry has recorded at least 300 million contracts in trading volume.
Source: OIC
ETF Industry Assets Hit Another Record High
September 4, 2012--If you've been reading that exchange-traded funds are undergoing a pruning process, with a range of unpopular funds shutting down, also realize this: Industry-wide assets keep on growing.
The U.S. ETF business hit another record high in assets under management in August, at $1.102 trillion, according to Deborah Fuhr of ETFGI LLP, counting 1,178 ETFs (Figures don’t include close cousins, such as exchange-traded notes). The old record happened way back in …. July. U.S. ETF assets the previous month were $1.083 trillion.
Source: Barron's
Swaps rules are expected to boost global demand for collateral
Spetember 3, 2012--Money used to make the world go around. Now it is collateral.
This is because collateral, in securitised markets, is the key to credit. Central banks have never lent on an uncollateralised basis and they have spread this predilection.
Collateral is what banks use to fund themselves at banks and central banks, what broker-dealers use to fund themselves at banks and what fund managers use to fund their portfolios at prime brokers.
Source: Financial News
