Global ETF News Older than One Year
IMF Working paper-Does Central Bank Capital Matter for Monetary Policy?
February 28, 2012--Summary: Heavy foreign exchange intervention by central banks of emerging markets have lead to sizeable expansions of their balance sheets in recent years-accumulating foreign assets and non-money domestic liabilities (the latter due to sterilization operations).
With domestic liabilities being mostly of short-term maturity and denominated in local currency, movements in domestic monetary policy interest rates can have sizable effects on central bank's net worth. In this paper we examine empirically whether balance sheet considerations influence the conduct of monetary policy. Our methodology involves the estimation of interest rate rules for a sample of 41 countries and testing whether deviations from the rule can be explained by a measure of central bank financial strength. Our findings, using linear and nonlinear techniques, suggests that central bank financial strength can be a statistically significant factor explaining large negative interest rate deviations from "optimal" levels.
view IMF Working paper-Does Central Bank Capital Matter for Monetary Policy?
Source: IMF
NYSE Liffe U.S. Launches Options on Mini Gold and Mini Silver Futures Contracts
Expands futures product line
Adds depth and liquidity to precious metals market
Enhances client risk management capabilities
February 27, 2012--NYSE Liffe U.S., the U.S. futures exchange of NYSE Euronext (NYX), announced that it successfully launched options on its mini-sized gold and mini-sized silver futures contracts.
These new options contracts are designed to meet growing customer demand to trade and invest in the precious metals market.
The options on NYSE Liffe U.S. 33.2 oz. mini gold and 1,000 oz. mini silver futures contracts provide traders flexibility by offering multiple trading strategies, enhanced risk management capabilities and added depth and liquidity to the underlying mini gold and mini silver futures market.
Source: NYSE Euronext
ETFS US Precious Metals Weekly Silver and gold hit multi-month highs after breaking key technical levels
February 27, 2012--Silver and gold hit multi-month highs after breaking key technical levels. The silver price surged to a five-month high of US$35/oz. last week after moving above its 200-day moving average, a key technical resistance barrier, for the first time since September 2011. It is also interesting to note that silver volatility is at its the lowest level in 16 months, likely aiding the trend.
The bullish mood following the Greek bailout deal also prompted gold to break out of its recent range of US$1700-US$1750. Gold rallied to a 3-month high of US$1780, and should remain well supported by broad macro trends with global central banks remaining biased to providing further stimulus to help sustain the uncertain global recovery.
ECB’s LTRO operations and US growth data key to market mood. The strength of the Euro has added upward momentum to broad commodities and precious metals prices in particular, with silver seeing particularly strong gains. Silver this year has been in a “sweet spot”, with stronger growth indictors but yet still strong demand for “store of value” assets keeping silver in strong demand. The size of the ECB’s long-term liquidity operations (LTRO) will be a key focus this week. While a big number may initially be positive for cyclical assets, it may also raise questions over the health of the Eurozone banking system. A host of manufacturing indicators are also scheduled for release this week, with the US manufacturing ISM key to investor perceptions of the sustainability of the US growth rebound. Europe data will also be watched carefully to see if US growth spillover is occurring, though elevated joblessness and fiscal retrenchment are likely to continue weigh on Eurozone growth prospects.
visit www.etfsecurities.com for more info
Source: ETF Securities
Structural reforms can make the difference as countries rebound from crisis, OECD says
February 24, 2012--Structural reforms can make the difference as countries seek to rebound from the crisis, boost growth and create jobs, according to the OECD's latest Going for Growth report.
"The crisis has acted as a catalyst for reforms. While they are sometimes unpopular, painful or both, they are necessary to make longer term growth stronger, more sustainable and more equitable," said OECD Secretary-General Angel Gurría (read the full speech). "We know that these efforts will pay dividends in the future, which is why governments must keep up the reform momentum," Mr Gurría said.
Mr. Gurría presented the report in Mexico City with Mexico’s finance minister Jose-Antonio Meade, ahead of the 25-26 February meeting of G20 finance ministers. He said the OECD’s country-specific structural reform recommendations are applicable to all G20 countries as they steer their economies out of the crisis.
view Economic Policy Reforms: Going for Growth 2012
Source: OECD
Religion vs finance
February 24, 2012--A controversial plan by Goldman Sachs to issue an Islamic bond has ignited a wider debate on whether conventional banks in the West should be allowed to engage in Islamic finance.
At a major conference of Islamic scholars and bankers in London this week, much of the public and private discussion was devoted to whether growing Western interest in Islamic finance could damage the industry by compromising its religious principles.
Some participants argued investment banks such as Goldman should be banned from issuing Islamic bonds, or sukuk, because the funds they raised could help to finance other parts of their business that did not comply with sharia or Islamic law.
read more
Source: FIN 24
Lower global crop prices to ease food inflation: USDA
After two years of razor thin stocks, world crop supplies, led by wheat, are recovering.
"Certainly the high prices that we saw last year have prompted a global production response for most commodities," USDA Chief Economist Joe Glauber told the agency's annual outlook forum.
Source: Reuters
Canada welcomes delay of EU oil sands decision
"We understand the European Union Fuel Quality Committee today did not approve the implementing measures for their fuel quality directive," Canadian Natural Resources Minister Joe Oliver said in a statement.
"We are pleased to see that many EU countries are opposed to this discriminatory measure."
Source: EUbusiness
UK and Japan warn Volcker rule poses threat to recovery
George Osborne, the British chancellor, has joined forces with Jun Azumi, his Japanese counterpart, in warning in a column in today’s Financial Times that the US banking reforms could make it “more difficult, costlier and riskier for countries to issue and distribute debt”, at a time when many eurozone countries are already under strain.
Source: FT.com
FEAS Monthly Newsletter February 2012
PALESTINE EXCHANGE: The Middle East Investor Relations Society (ME-IR Society) and a number of Palestinian companies following IR best practices met in Ramallah to agree an Investor Relations Charter. view newsletter
Source: FEAS
ETFS US Precious Metals Weekly:Precious Metals Rally After Greek Bailout Deal Agreed
While a number of hurdles to pushing the package through remain,
including agreement by individual European country parliaments, it
appears that Greece will – at least for now – avoid the worst case scenario
of a disorderly debt default. The boost to risk sentiment from this
agreement, together with recent improvements in US macro data and
further central banking monetary easing (including China’s 50bp reserve
requirement cut last week) is likely to keep a firm tone to the more cyclical
precious metals such as silver, platinum and palladium.
Gold demand hits 14-year high. In the latest edition of the World Gold
Council’s (WGC) Gold Demand Trends released last week, it revealed that
gold demand hit a 14-year high of 4067 tonnes in 2011, buoyed by record
investment demand. Although investment demand jumped 5% to record
levels, jewellery demand partially offset the gains, dropping by 3%. The
headline decline in jewellery demand masked an interesting underlying
trend: China’s demand surged by 13%, while India, the world’s largest
jewellery market, experienced a 14% fall in jewellery demand in tonnage
terms. The WGC also notes that Official sector gold purchases are now at
a 47-year high. Once a source of gold supply, the official sector bought a
multi-decade high of 440 tonnes last year. Riots threaten PGM production in South Africa. The Rustenberg mine,
the world’s largest platinum mine and responsible for 15% of global
production, faces prolonged stoppages after riots broke out last week.
Implats, the operator of the mine, had re-hired 6,000 of the 17,000
workers it had fired in January 2012 following a strike which the company
deemed illegal. Implats has estimated that the 35-day strike has cost the
company 60,000 ounces in lost output, around US$155milion. Implats CEO
has indicated that production could be restored to normal within’two to four
weeks’, however the rioting is deterring workers from returning to their jobs after one reported fatality. The hit to supply has added further
impetus to platinum and palladium prices increases. visit www.etfsecurities.com for more info
Source: ETF Securities
February 23, 2012--Global crop prices will retreat sharply this year as farmers around the world expand production to bring stability back to commodity markets and ease fears of food inflation, the U.S. government forecast on Thursday.
February 23, 2012--Canada's resources minister said Thursday he is "pleased" that a key EU decision on whether to label oil from Canada's tar sands as highly polluting was postponed to June after European talks ended in stalemate.
February 22, 2012--The UK and Japan have urged the US to rewrite its so-called "Volcker rule", claiming that trading restrictions on US banks could hit the international sovereign debt market at a delicate moment in the global recovery.
February 22, 2012-Highlights
Bucharest Stock Exchange (BVB) ends 2011 with a turnover of RON 21.73 million, with a growth of 66.4%. The net profit of BVB for 2011 increased compared to 2010 by 197% up to RON 16.96 million. The operating result was 21 times higher than the one obtained in 2010.
February 21, 2012--Greek bailout agreement pushes precious metals prices higher.
Gold, silver, platinum and palladium prices all rallied strongly in early
London trade following the news overnight that Eurozone leaders agreed to a €130bn Greek bailout package. The agreement appears to have
convinced investors who have been sitting on cash to deploy funds across
markets, with silver seeing the strongest immediate price response.
Improved sentiment towards Europe has buoyed the Euro/USD exchange
rate in recent days, adding further support to precious metals prices.
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