Global ETF News Older than One Year
Time for SWFs to show greater transparency
September 2, 2012--Sovereign wealth funds are suddenly on the radar. In truth, many have been there for decades but observers in the investment industry are increasingly noticing their numbers, their size, or in some cases just how big their most recent deal was, and pressure is growing for greater transparency.
Eliot Kalter, senior fellow of the Fletcher School’s Sovereign Wealth Fund Initiative, says the number of SWFs effectively doubled in the past 10 years, while Nick Tolchard, head of Invesco Middle East and global SWF co-ordination, estimates total SWF assets to be $5tn-$6tn.
Source: FT.com
EPFR Global Fund Data-Investors dip into equity funds again ahead of key policy meetings in September
August 31, 2012--Investors responded warmly to talk of increased Chinese spending on infrastructure during the final week of August as they positioned themselves for further quantitative easing, inflation, disappointment, increased volatility or some combination of these elements while maintaining their search for yield.
Flows into EPFR Global-tracked China Equity Funds jumped to a 32 week high, High Yield Bond and Gold Funds both took in over $1 billion, Floating Rate Bond Funds posted their biggest inflow since mid-April and Volatility Funds attracted fresh money for the fourth straight week.
Overall, Bond Funds collectively took in $5.3 billion during the week ending August 29, lifting year-to-date inflows over the $270 billion mark, while Equity Funds absorbed $2.1 billion and their first weekly inflow in four weeks. Money Market Funds recorded modest net outflows as commitments to US Money Market Funds were more than offset by redemptions from their European counterparts.
Visit http://www.epfr.com for more info
Source: EPFR Global
Eurex aims for quick growth in Asia
August 31, 2012--Eurex hopes to gain over-the-counter derivatives business from Asian firms starting next year at its office in Singapore.
In preparation, the exchange will begin clearing interest-rate swaps for European clients in Asia by year-end. Clearing chief Thomas Book said Eurex might also add renminbi-linked and other derivatives to its clearing service as demand develops.
Source: Smart Brief
EDHEC-Risk Institute Research Highlights the Risk of New Forms of Equity Indices Underperforming Cap-Weighted Indices
August 30, 2012--In a new research paper published in the prestigious Journal of Portfolio Management, entitled "Diversifying the Diversifiers and Tracking the Tracking Error: Outperforming Cap-Weighted Indices with Limited Risk of Underperformance" EDHEC-Risk Institute warns of the risk of new forms of alternative-weighted equity indices seriously underperforming traditional cap-weighted indices.
The research shows that the main alternative indices on the market, while superior performers over the long term, have considerable relative drawdowns with regard to their cap-weighted counterparts. These drawdowns can be long (more than two years) and significant (more than 13%).
Source: EDHEC
DCGX Academy: US STIMULUS?: US GDP +1.7 % Vs 1.5% forecast, Consumer Spending 5M High, Jackson Hole
August 30, 2012--COMMODITIES
China Copper Demand Seen Growing at Slowest Pace in 15 Years
Oil Declines for a Second Day as Stockpiles Rise, Storm Weakens
Gold Set to Drop for Second Day as US GDP up 1.7% Vs 1.5% forecast
The rupee retreated 0.1 % to 55.7050 continuing the decline this month, One-month implied volatility, a unchanged at 9.80 %, the lowest level since May 3. The volatility has reduced 1.4 %a, this month.GDP data forecast shows that India's economy expanded at the slowest pace in three years. SENSEX fell for a fifth day. Investors are cautious before Federal Reserve Chairman Ben S. Bernanke speaks at a meeting of central bankers in Jackson Hole, Wyoming, tomorrow, RBI Governor said in New York yesterday that lower growth is acceptable to contain inflation , and need to reduce inflation by 2% . 3M NDF at 56.73 Vs 56.65 .
GOLD
Gold is poised to decline for a second day on opinion that the U.S. Federal Reserve will refrain from additional stimulus amid signs the world's largest economy is improving. Immediate-delivery gold was little changed at $1,657.90 in Singapore, poised for a third monthly gain. December-delivery gold fell as much as 0.4 % to $1,656.70 an ounce on the Comex, and was at $1,660.30. Gold is poised to decline for a second day on opinion that the U.S. Federal Reserve will refrain from additional stimulus amid signs the world's largest economy is improving. Spot Gold was little changed at $1,657.90 an ounce in Asian hours , poised for a third monthly gain.
Source: DGCX Academy
Australia EU Link Makes Carbon-Market Theory Real, Marcu Says
August 29, 2012--The proposed linking of the European Union and Australian greenhouse-gas-reduction programs will demonstrate to policy makers across the world that carbon markets can help address climate change, said Andrei Marcu.
“Those who say there is no urgency are being contradicted on the ground,” Marcu, head of the Centre for European Policy Studies’ Carbon Market Forum in Brussels, said today in an interview from United Nations climate talks in Bangkok. “This is a very good signal. This is not theory any more.”
Source: Bloomberg
Shelter may not be so easily found in ETFs
August 28, 2012--With global markets in thrall to central bankers, Federal Reserve chairman Ben Bernanke's speech at Jackson Hole on Friday looks set to be a big trading opportunity.
Any clues on the timing of further monetary stimulus could see large moves in assets from equities to Treasuries to gold.
Source: FT.com
Macro Matters-Waiting for the Troika Review on Greece
August 28, 2012--China
Property market may be further tightened.
Hong Kong and Chinese stock markets dropped, led by declines in developers as concerns resurfaced over additional property-tightening measures.
The unlikely RRR cut for commercial lenders further weighed down the market. A news agency reported, given recent increase in property price, government may continue to tighten the property market. Official property price data added to investors jitters as average housing prices mildly rose for two consecutive months.
India
Central bank reluctant to cut rates.
Despite a rally early last week, gains were pared on last Friday as investors scaled back expectations for a strong stimulus from the U.S. Federal Reserve.
Concerns grew throughout the week that economic reforms may be delayed as the parliament was adjourned. Opposition parties blocked all legislative proceedings in the monsoon session of Parliament, as they demanded the resignation of Prime Minister Manmohan Singh over the coal allocations.
Brazil
August’s CPI reported above consensus.
Brazilian equities trimmed recent gains last week. Despite a broadly weak local Q2 earnings season, focus is on improving GDP growth and earnings outlook for the second half, and expectations of potential further stimulus.
The relief rally in August led by steel and home building stocks were largely attributable to technical factors rather than material change in fundamentals.
First Waiting for the Troika review on Greece.
Friday’s meeting of US Central Bankers at Jackson Hole is the main focus this week, with Fed Chairman Bernanke expected to provide more detail regarding the options for further near-term monetary easing and stimulus.
In coming weeks, we will also see the Troika (IMF, EC, ECB) deliver its first review of the Greek bailout program, and German legislators vote on potential ECB purchases of Eurozone debt. Both will be important to broad market stability and the outlook for the Euro.
Source: Mirae Asset Financial Group
ETFS Precious Metals Weekly: Germany and US Combine to Boost Gold and Silver to 4-month Highs
August 27, 2012--Gold hits 4-mth high, breaks above 200-dma. Follow-through buying after the release of the latest FOMC minutes, saw gold and silver extend the rally that began on signs of greater European solidarity. Gold reached US$1675, a 4-month high, and a 4% gain for the week.
Silver jumped 9% last week, above $30/oz. for the first time since early May. There were several members of the Federal Reserve Board who indicated the need for additional stimulus, and that is likely to mean some form of quantitative easing, so called QE3.The Eurozone’s dynamics appear to be shifting toward a more collaborative approach, as evidenced by Germany’s nascent indications of support for a potential fresh bond buying program from the ECB. Meanwhile, gold, and other precious metals, like silver, rallied on the back of rising speculation that German officials are becoming more supportive of additional European Central Bank’s stimulus activities, which could help lower borrowing costs for debt burdened Eurozone nations. A key test of the support for a more coordinated approach for Europe is the German parliament's vote on legality of ESM in mid-September. However, recent comments regarding the need for country’s to adhere strictly to austerity commitments indicates that there is a wide margin between rhetoric and concrete actions.
Platinum rallies 10% on labour unrest as contagion threatens. Reports of spillover of the labour activism that began at Lonmin’s Marikana mine to surrounding mines, like Anglo American Platinum, is likely to provide further support to the price of platinum group metals. Platinum surged 9% last week on the potential for further cuts in supply. Already Lonmin’s operations have been shut down for two weeks, and there are suggestions its not just the platinum industry being affected, with Goldfield’s CEO warning of potential problems for other mining companies after a ‘goslow’ from Goldfields workers. It appears very unlikely that while the power struggle between the main mining unions, the National Union of Mineworkers and the upstart Associated Mineworkers and Construction Union, continues that the threat of production cuts will continue to loom over the industry.
visit www.etfsecurities.com for more info
Source: ETF Securities
Week Ahead Economic Overview-Euro area crisis back in focus after summer lull
August 24, 2012--Euro area crisis to move into sharp focus ahead of key events in September
US and Japan both see a host of key economic data next week
As summer draws to a close, euro area policy makers will again take centre stage in the coming weeks, as concerns about Greece look set to keep investors on edge. Comments from EU leaders will be watched closely by all. The forthcoming week features more economic data releases than of late, although a bank holiday for the UK on Monday means the start of the week is relatively quiet.
The United States sees durable goods orders data, surveys of business conditions in the Chicago and Dallas areas, consumer sentiment numbers (from both the Conference Board and University of Michigan) and the S&P Case-Shiller house price index. Extra insight on the health of the US economy will also be provided by weekly jobless claims, personal income and outlays, pending homes sales and retrospectively by an updated estimate of second quarter economic growth.
Source: Markit Economic Research
