Global ETF News Older than One Year
ETFS Precious Metals Weekly: Eurozone Problems and Stimulus Hopes Boost Gold ETP Holdings to Record Levels
August 20, 2012--Gold price performance impressive despite drop in demand. The
World Gold Council indicated that while demand dropped 7% in Q2 2012
compared to a year earlier, the price was resilient, rallying by 7% over the
period. The increased economic uncertainty and expectations of policymaker stimulus that has pervaded financial markets in recent years and led investors to defensive assets has partially offset soft physical demand from emerging markets.
Chinese and Indian demand were the main reasons behind the weaker physical demand in Q2. While jewellery demand contracted 15% over the 12 months to Q2 2012, the contraction is only 4% if China and India are excluded from the calculation. In contrast, emerging market central banks have been the driving force behind the net long position in gold by the official sector, as they seek to diversify foreign exchange holdings, partially offsetting weak private sector demand.
Global ETP gold holdings reach record level of 78 million ounces. While emerging market physical demand may have dried up, particularly in India as a result of the weak rupee and government policy, ETP investment demand has remained buoyant, increasing by over 3% over 2012 to reach record highs. Interestingly, the latest WGC report into gold trends showed that if China and India were excluded from the investment demand calculation (overall investment was lower by 23%), investment jumped 15% for Q2 2012 from a year prior.
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Source: ETF Securities
CME Group Applies To Create An Exchange In The United Kingdom
August 20, 2012--CME Group, the world's leading and most diverse derivatives marketplace, announced today it is in the process of applying to the United Kingdom's Financial Services Authority (FSA) to create a London-based derivatives exchange.
Pending regulatory approval as a Recognized Investment Exchange, CME Europe Ltd will initially begin trading foreign exchange futures products and is expected to launch mid-2013.
"We continue to see an increase in business coming from our diverse set of customers in Europe, with more than 20 percent of our volume now originating from the region," said CME Group Executive Chairman and President Terry Duffy.
Source: Bloomberg BusinessWeek
CME Is Said to Plan Derivative Exchange in Europe
August 19, 2012--The CME Group is planning to start a European derivatives exchange, in a significant expansion of the American market operator's global footprint, a person briefed on the matter said on Sunday.
The move is the latest effort by an American exchange to plumb for new ventures. As their core business has come under pressure and margins shrink, industry leaders have been expanding into lucrative areas like overseas markets and derivatives trading. CME, whose $18 billion market capitalization makes it one of the most valuable market operators in the world, now makes most of its profit from derivatives.
Source: NY Times
Gold Bulls Expand as Billionaire Paulson Buys Metal: Commodities
August 17, 2012--Gold traders are the most bullish in six weeks as investors boosted their bullion holdings to a record on concern that economic growth is slowing and after billionaires John Paulson and George Soros bought more metal.
Fourteen of 26 analysts surveyed by Bloomberg expect prices to rise next week and six were bearish. A further six were neutral, making the proportion of bulls the highest since July 6. Paulson raised his stake in the SPDR Gold Trust, the biggest gold-backed exchange-traded product, by 26 percent in the second quarter and Soros more than doubled his holding, U.S. Securities and Exchange Commission filings showed Aug. 14. Global holdings reached a record on Aug. 10, data compiled by Bloomberg show.
Source: Bloomberg
Basel Committee issues consultative document on managing risks associated with the settlement of foreign exchange transactions
August 17, 2012--The Basel Committee on Banking Supervision today issued for consultation Supervisory guidance for managing risks associated with the settlement of foreign exchange transactions.
The proposals published today update the Committee's Supervisory guidance for managing settlement risk in foreign exchange transactions. Since publication of that guidance in 2000, the foreign exchange market has made significant strides in reducing the risks associated with the settlement of FX transactions. However, substantial FX settlement-related risks remain, not least because of the rapid growth in FX trading.
Source: BIS
GERMANY +VE: Merkal says it will support ECB and Fast, assets rise
August 17, 2012--HIGHLIGHTS
COMMODITIES
Oil futures decline after rising for three weeks
Copper rises on better than expected U.S. Housing Permits
Gold Rises on Stimulus Expectations after US Jobs data
GOLD
China US Stimulus
Gold up on Friday, its biggest rise in two weeks on German support for ECB , Spot gold up 0.1 % to $1,616.41, on course for a 0.2-% weekly loss, despite posting its biggest one-day gain in two weeks, at 0.7 %, in the previous session. December futures flat at $1,618.60 . U.S. jobless claims climbed by 2,000 to 366,000 in the week ended Aug. 11. Unemployment has been above 8 % since February 2009, the longest stretch in the post-World War II era. Chinese Premier Wen Jiabao said that there's" a growing room for monetary policy operation. Federal Reserve Chairman Ben S. Bernanke may talk about monetary options at a conference in Jackson Hole, Wyoming, at the end of the month.
Source: DGCX Academy
Harnessing the rise of "alpha' ETFs
August 15, 2012--This year there has been a flurry of high profile launches of actively managed exchange traded funds (ETFs).
At the end of April, State Street launched three actively managed ETFs in the US that aim to beat market indices by owning a portfolio of underlying ETFs. In March, famous bond investor Bill Gross launched his Pimco Total Return ETF, again listed in the US.
Source: CityWire
Investors Flee Equity Funds, Embrace ETFs
August 15, 2012--Equity fund investors appear to be exiting from mutual funds and investing in ETFs instead.
The ICI reported net redemptions of $64.673 billion for U.S. equity funds and $42.887 billion for all equity funds for the year to date. At the same time, equity ETFs are booming. ETFs/ETPs saw net inflows of $130.766 billion for the year to date through July, and equity ETFs/ETPs gathered the largest net inflows with $75.852 billion, followed by fixed income ETFs/ETPs with $41.353 billion, according to London-based ETFGI.
Source: Securities Technology Monitor
DCGX Academy: PARADOX: Indian Inflation 7.2% - Monetary Easing difficult, UK inflation 2.5 years low
August 14, 2012--HIGHLIGHTS
COMMODITIES
Oil rises on inventory survey-stocks seen at 4 months low
Copper declines 0.4%, in anticipation of French and German GDP
Gold rises on Stimulus hopes
Source: DGCX Academy
ETFS Precious Metals Weekly:Is Another Crisis Necessary to Spark a Gold Price Break-out?
August 13, 2012--Gold stabilises above US$1600/oz as as volatility falls to lowest level in over two months. The absence of follow-through on ECB
president Draghi's promise to do "whatever it takes" to save the Euro, appears to have pushed investors to the sidelines, with gold continuing to trade in a relatively tight range above $1600/oz.
Continued high market uncertainty about how the crisis in Europe will be resolved and expectations of further easing ahead by the Fed and the ECB are supporting the gold price, but so far there has not been a catalyst for a strong upward move.
What may spark the next gold price break-out? While it may appear counter-intuitive, other than a move by the Fed to implement another round of quantitative easing, a key catalyst for the next upward move for gold and other precious metals may be a renewed decline into crisis and an official bailout request by Spain. A Spanish bailout request would signal to the market that the country’s officials are finally ready to recognize the severity of their problems and allow them access to funds to help support their ailing banks, sovereign and regional debt payments.
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Source: ETF Securities
