Global ETF News Older than One Year
Silver price volatility deters investors
April 19, 2012--The price swings in the silver market in the past year have deterred investors in the metal, according to Thomson Reuters GFMS, putting prices on course for a correction of as much as 10 per cent in the next few months.
“To say that silver was on a roller-coaster ride during 2011 would be something of an understatement,” GFMS said in its annual review of the market published by the Silver Institute.
Source: FT.com
Modernizing Emerging Market Core Portfolios
Applying insights from "The Emerging Market Benchmark Bear Hug"
April 19, 2012--As of March 31, 2012, 97% of the assets invested in emerging market equity Exchange Traded Funds (ETFs) tracked broad benchmarks.1 These benchmarks are dominated by sectors that led many frontier countries to emerging market status, and
include economies that graduated to developed market status 15 years ago.
There is a simple solution to help investors modernize their emerging markets (EM) core. Through a blend of ETFs, investors can align their portfolios with the themes that many emerging market strategists believe will drive future EM growth.
Issue: Traditional EM investments may lag long-term growth themes
Emerging market research is largely focused on sustainable domestic demand—organic, local growth vs. export growth—including the themes of infrastructure, urbanization and the rise of the middle class consumer. Many market observers believe these will be the drivers that advance EM countries toward developed market status.
Source: Emerging Global Advisors
ESMA approves credit ratings from Argentina and Mexico for use in the EU
April 18, 2012--The European Securities and Markets Authority (ESMA) announces today that it considers the regulatory frameworks for credit rating agencies (CRAs) of Argentina and Mexico to be in line with European Union rules. Today's announcement allows European financial institutions to continue using credit ratings issued in these countries for regulatory purposes after 30 April 2012.
In order to facilitate regulatory information exchange, and as a precondition to endorsement, ESMA has entered into co-operation agreements for the supervision of CRAs with the national competent authorities of Argentina and Mexico. Ratings issued under the regulatory frameworks of Australia, Canada, Hong Kong, Japan, Singapore and the United States have already been approved for use in the EU.
view the ESMA-Final report Technical advice on CRA regulatory equivalence-US, Canada and Australia
Source: ESMA
ETF Securities: Global Commodity ETF Assets Hit Record $189B In 1Q
Global commodity ETF assets hit record $189 billion in first quarter
Quarterly inflows into commodity ETFs rise by $7.5 billion in first quarter
$1.2 billion of new money flows to oil ETFs in first quarter
April 18, 2012--Investors flocked to commodity-linked exchange-traded funds and products during the first quarter, lifting the sector ETF assets to a record $189 billion, ETF Securities said Wednesday.
A rebound in U.S. economic growth and the restructuring of Greek sovereign debt fanned investor demand for risky assets, lifting inflows into commodity ETFs by $7.5 billion during the first quarter of 2012 from the final quarter of 2011. This was the largest quarterly rise in almost a year.
Source: Wall Street Journal
OPEC: Political Tension Responsible for High Oil prices
April 17, 2012--The Organisation of Petroleum Exporting Countries (OPEC) has said it is supplying the market with enough crude oil but political situations are responsible for the current high oil prices.
President of the organisation cum Iraq's Oil Minister, Abdul Kareem Luaiby, told reporters in Baghdad that oil prices were affected more by political instability than by production matters. He however noted that OPEC was seeking to achieve a balance in world oil prices.
"OPEC has exerted all it can to produce a quantity of oil that is balancing demand, but political situations are governing prices”, Dow Jones Newswires quoted the OPEC Chief to have told reporters in Baghdad.
Source: This Day Live
Global Financial Stability Report-The Quest for Lasting Stability
April 17, 2012--The April 2012 Global Financial Stability Report assesses changes in risks to financial stability over the past six months, focusing on sovereign vulnerabilities, risks stemming from private sector deleveraging, and assessing the continued resilience of emerging markets..
The report probes the implications of recent reforms in the financial system for market perception of safe assets, and investigates the growing public and private costs of increased longevity risk from aging populations.
view the IMF Global Financial Stability Report-The Quest for Lasting Stability
Source: IMF
IMF-Fiscal Monitor-Balancing Fiscal Policy Risks
April 17, 2012--Overall, fiscal risks remain elevated, according to this issue of the Fiscal Monitor, although there are signs that in some key respects they are less acute than six months ago. Though past efforts with fiscal consolidation are beginning to bear fruit, debt ratios in many advanced economies are at historic levels and rising, borrowing requirements remain very large, financial markets continue to be in a state of alert, and downside risks to the global economy predominate.
In this uncertain environment, fiscal policy must find the right balance between exploiting short-term space to support the fragile recovery and rebuilding longer-term space by advancing fiscal consolidation. Against that background, the issue examines in more detail the concept of fiscal space, or the scope that policymakers have to calibrate the pace of fiscal adjustment without undermining fiscal sustainability.
view IMF Report-Fiscal Monitor Balancing Fiscal Policy Risks
Source: IMF
CPSS-IOSCO issue new standards for financial market infrastructures
April 16, 2012--The Committee on Payment and Settlement Systems (CPSS) and the International Organization of Securities Commissions (IOSCO) have today published three documents that promote global efforts to strengthen financial market infrastructures (FMIs):
a report entitled Principles for financial market infrastructures;
a consultation paper on an Assessment methodology for these new standards; and
a consultation paper on a Disclosure framework for the standards.
New and more demanding international standards for payment, clearing and settlement systems, including central counterparties, have today been issued by the CPSS and IOSCO in a report titled Principles for financial market infrastructures. Among other things, the principles will provide important support for the G20 strategy to make the financial system more resilient by making central clearing of standardised OTC derivatives mandatory. CPSS and IOSCO members will strive to adopt the new standards by the end of 2012. Financial market infrastructures (FMIs) are expected to observe the standards as soon as possible.
Source: IOSCO
New standards for financial market infrastructures issued by CPSS-IOSCO
April 16, 2012--The Committee on Payment and Settlement Systems (CPSS) and the International Organization of Securities Commissions (IOSCO) have today published three documents that promote global efforts to strengthen financial market infrastructures (FMIs):
a report entitled Principles for financial market infrastructures; 1 a consultation paper on an assessment methodology for these new standards; and
a consultation paper on a disclosure framework for the standards.
New and more demanding international standards for payment, clearing and settlement systems, including central counterparties, have today been issued by the CPSS and IOSCO in a report titled Principles for financial market infrastructures. Among other things, the standards will provide important support for the G20 strategy to make the financial system more resilient by making central clearing of standardised OTC derivatives mandatory. CPSS and IOSCO members will strive to adopt the new standards by the end of 2012. Financial market infrastructures (FMIs) are expected to observe the standards as soon as possible.
view the Principles for financial market infrastructurespaper
view the Disclosure framework for financial market infrastructures-Consultative report
Source: BIS
ETFS Precious Metals Weekly: Gold boosted as Fed speeches highlight need for extended period of "highly accommodative" monetary policy
April 16, 2012--Federal Reserve Vice-Chairman's speech lifts precious metals after FOMC sell-off. Gold remains beholden to the communications of central banks, trading choppily in recent weeks as the market weighs the possibility of another round of quantitative easing. Comments by Federal Reserve Vice-Chairman Janet Yellen's comments last week gave a boost to precious metals prices, after she indicated that the US central bank is 'willing and committed to take whatever actions are necessary' to maintain its dual mandate of promoting maximum employment and stable prices.
The US dollar weakened following the speech, leading to gains for all precious metals as investors gained confidence about the potential for further monetary stimulus. With currency debasement a key investment theme for gold investors, the gold price bounced off its lowest level in three months, rallying by 2%.
South African PGM production slumps 50% in February. Official figures released figures last week by Statistics South Africa showed the that platinum group metal (PGM) production in February slumped by nearly 50%. The six-week strike at the Rustenberg mine, responsible for around 15% of global production, was largely to blame for the production loss. However, for the three months ending February, PGM production was down just 2%.
India’s jeweller’s back at work, but for how long? Indian jewellers suspended a three week strike after finance minister Mukherjee said that their demands for the gold excise tax hike to be withdrawn would be given consideration. However, jewellers have given the government until May 11th for the laws to be repealed or the strike would recommence. The Indian parliament convenes on May 7th, giving policymakers around four days to consider the new budget measures and possible alternatives.
visit www.etfsecurities.com for more info
Source: ETF Securities
