Global ETF News Older than One Year
ETFS US Precious Metals Weekly: Gold set for strongest January in more than 30 years as Fed lays QE3 groundwork
January 30, 2012--Gold saw its fourth consecutive weekly rise last week, with YTD
returns matching growth over the whole of 2011 at around 9%. Federal Reserve interest rate projections hinting that official interest rates could remain rock-bottom into 2014 was the chief catalyst, tempting investors out of cash after 2011’s end of year deleveraging. Fed chairman
Ben Bernanke also hinted that if the Fed’s expectations of anaemic
recovery in the US jobs market comes to pass, the Fed will likely look at
ways to ramp-up monetary stimulus.
Negative real interest rates have been a key support factor for gold in recent years (see fig.1 below).
Precious metals positioning and technicals becoming more supportive. Net speculative futures positioning in silver, the hardest hit in the Q4 speculative long position clear-out, saw its fourth consecutive weekly build in net long positions last week, with net speculative futures positions in other precious metals also continuing to rise after hitting their lowest levels in at least 2 years by the end of 2011. Technicals are also becoming more supportive with gold holding above its 200 day moving average and other precious metals also moving back to their 200 day trend lines (see page 4 for details).
South African platinum mine falls, adding support to platinum prices. Anglo American, the world’s largest platinum supplier, announced a 19% drop in Q4 platinum output last week, with safety-related mine stoppages more than doubling in 2011. Labour disputes also remain an issue in 2012, with global platinum producer, Impala Platinum, losing approximately 3,000 oz of production per day relating to stopwork action in a mine in South Africa. The action is forecast to last a fortnight, potentially disrupting around 10% of average monthly platinum mine output in South Africa, provider of more than three-quarters of annual global platinum mine supply.
visit www.etfsecurities.com for more info.
Source: ETF Securities
Gold Price Retreats from 7-Week High
January 29, 2012--Gold ticked lower Monday after earlier rising to its highest in more than seven weeks as investors awaited the outcome of Greece's debt deal talks, but sentiment was supported by a firmer euro and lower-than-expected U.S. growth data.
Spot gold hit a high of $1,739 an ounce, its strongest since Dec. 8, and was at $1,734.65 an ounce by 0022 GMT, down $2.55.
The world's biggest hedge fund, Bridgewater Associates, was bullish on bullion as a hedge against inflation as governments print more money to reduce debt.
Source: IBTtimes
India’s economy grew by 8% in the last financial year
Standard & Poor’s rates India as investment grade BBB- and stable
Negative perceptions about the Indian economy could damage investment
The theme of the 42nd World Economic Forum Annual Meeting is The Great Transformation: Shaping New Models. January 28, 2012--“The macroeconomics of India are fundamentally strong. Those who have these alarm bells ringing should look inwards,” said Anand Sharma, Minister of Commerce and Industry, Textiles of India. Speaking today at the 42nd World Economic Forum Annual Meeting, Sharma vigorously defended the reforms made by his government and the economic prospects of India.
“India can take care of itself, I can assure you,” he said.
When questioned on India’s growing current account deficit, he told participants: “We need to spend to empower and educate our people.”
Supachai Panitchpakdi, Secretary-General of the United Nations Conference on Trade and Development (UNCTAD), echoed Sharma’s optimism. “India is not immune, but it has its own cushion with the size of domestic demand,” he said. He praised India’s open market policies, saying the country has one of the least interventionist exchange rate policies among emerging economies.
India’s investment grade rating of BBB- is more likely to improve than deteriorate, said Douglas L. Peterson, President of Standard & Poor's. He cited India’s strong domestic demand and domestic growth as reasons for optimism. “There are development challenges,” Peterson said, “such as the need in the agricultural sector for modernization.”
Source: World Economic Forum
Little hope for NYSE Euronext-Deutsche Boerse tie-up: report
January 26, 2012--The proposed merger of Deutsche Boerse and NYSE Euronext, which would create the world's largest market operator worth over $17 billion (13 billion euros) is in trouble, a senior executive was reported as saying on Thursday.
NYSE Euronext chief executive Duncan Niederauer told the Financial Times there was only a "glimmer of hope" the deal would be approved by European competition authorities.
The newspaper's website quoted Niederauer as acknowledging he had "misjudged" the approach taken by European Union antitrust authorities to the deal.
Source: EUbusiness
Europe Could Recover Its Dynamism, Says British Prime Minister David Cameron
Resolving the Eurozone crisis is the most urgent question facing Europe
Vital progress has been made, but Europe needs tough fiscal discipline, bold action and real political will
The theme of the 42nd World Economic Forum Annual Meeting is The Great Transformation: Shaping New Models.
January 26, 2012--Despite the uncertainty sweeping across the European Union, British Prime Minister David Cameron was bullish about the prospects for resolving the current Eurozone crisis. “Europe could recover its dynamism. I still believe we can. But only if we are bold. Only if we fight for our prosperity ... [and if we] get to grips with the debt,” he said.
The Prime Minister called for bold decisions on deregulation, on opening up the Single Market, on innovation and trade, and to address the “fundamental issues” at the heart of the Eurozone crisis. “All of these decisions lie in our own hands. They are the test of Europe’s leaders in the months ahead. ... The problems we face are man-made and with bold action and real political will we can fix them,” the Prime Minister urged.
Source: World Economic Forum
Investors see Africa as most attractive destination - EIU poll
January 25, 2012--More than one in two institutional investors see Africa as the most attractive region to invest in the next decade, with one in three expecting to put at least 5 percent of their portfolios into the continent by 2016, a survey showed on Tuesday.
Some 158 institutions including pension funds, hedge funds and private banks polled by the Economist Intelligence Unit EIU.L said Nigeria and Kenya are likely to bring the best investment returns within Africa over the next three years, followed by Zimbabwe, Egypt and Ghana.
Source: Reuters
IOSCO Publication: Follow-On Analysis To The Report On Trading Of OTC Derivatives
January 25, 2012--Executive Summary
This Follow-On Analysis to the Report on Trading1 (Follow-On Report) describes the different types of trading platforms currently available for the execution of OTC derivatives transactions in IOSCO member jurisdictions. Where possible, it also notes the differences relating to participant, product and geographic coverage.
There are a number of different types of trading platforms currently available for the execution of OTC derivatives transactions in IOSCO member jurisdictions. These platforms fall into two broad categories: those with multiple liquidity providers (multi-dealer platforms) and those with a single liquidity provider (single-dealer platforms). While these platforms are broadly similar in terms of the function they fulfil, there may be differences in the trade execution models used to effect transactions, the participant coverage, the degree of automation, the scope of asset class or product coverage, and the geographic coverage.
The trade execution models utilized by some multi-dealer platforms are anonymous counterparty models, such as fully-electronic order books, periodic electronic auctions, and hybrid methods that combine elements of both voice and electronic execution, which provide anonymity of counterparties prior to trade execution. Such models are typically used in the inter-dealer market space. Other multi-dealer platforms utilize request-for-quote and click-to-trade execution models that feature full disclosure of counterparties prior to trade execution. The single-dealer platforms utilize the request-for-quote and click-to-trade execution models with full disclosure of counterparties. The full disclosure models are typically used in the dealer-to-client market space. The following nine features reflect key functions of these trading platforms:
Source: IOSCO
World Economic Outlook Update Global Recovery Stalls, Downside Risks Intensify
January 24, 2012--The global recovery is threatened by intensifying strains in the euro area and fragilities elsewhere. Financial conditions have deteriorated, growth prospects have dimmed, and downside risks have escalated. Global output is projected to expand by 3¼ percent in 2012 -a downward revision of about ¾ percentage point relative to the September 2011 World Economic Outlook (WEO).
This is largely because the euro area economy is now expected to go into a mild recession in 2012 as a result of the rise in sovereign yields, the effects of bank deleveraging on the real economy, and the impact of additional fiscal consolidation. Growth in emerging and developing economies is also expected to slow because of the worsening external environment and a weakening of internal demand.
The most immediate policy challenge is to restore confidence and put an end to the crisis in the euro area by supporting growth, while sustaining adjustment, containing deleveraging, and providing more liquidity and monetary accommodation. In other major advanced economies, the key policy requirements are to address medium-term fiscal imbalances and to repair and reform financial systems, while sustaining the recovery. In emerging and developing economies, near-term policy should focus on responding to moderating domestic growth and to slowing external demand from advanced economies.
Financial risks escalate, global growth decelerates
Global growth prospects dimmed and risks sharply escalated during the fourth quarter of 2011, as the euro area crisis entered a perilous new phase. Activity remained relatively robust throughout the third quarter, with global GDP expanding at an annualized rate of 3½ percent—only slightly worse than forecast in the September 2011 WEO.
Source: IMF
Despite global economic turmoil, foreign direct investment increased in 2011 – UN
January 24, 2012--In spite of the economic turmoil that shook countries last year, global foreign direct investment (FDI) rose by 17 per cent, according to a United Nations report released today, which predicts it will continue to increase this year but warns of the risks posed by the frail economic climate.
The report, authored by the UN Conference on Trade and Development (UNCTAD), highlights the increase in FDI in both developed and developing countries as well as transition economies.
“Developing and transition countries continued to account for half of global FDI in 2011 as their inflows reached a new record high, driven mainly by investments in Latin America (up 35 per cent) and in transition economies (up 31 per cent),” the report states.
After three years of consecutive decline, inflows to developed countries rose last year, reaching an estimate $753 billion, up 18 per cent from 2010, largely due to cross-border mergers and acquisitions.
view report-Global Flows of Foreign Direct Investment Exceeding Pre-Crisis Levels in 2011
Source: UN
OPEC-Monthly Oil Market Report-January 2012
January 24, 2012--Oil Market Highlights
The OPEC Reference Basket decreased in December to settle at $107.34/b. The downward movement of the Basket was driven by revived fears about Europe's debt crisis, concerns about
economic growth in Europe and China, and a slumping euro exchange rate. Supportive bullish US economic data, as well as geopolitical concerns in the Middle East helped change the course of the market, particularly toward the end of the month and into January.
On 13 January, the OPEC Reference Basket stood at $111.75/b.
World economic growth has been revised down marginally to 3.5% in 2012 and remains at 3.6% for 2011. The US economy has gained some momentum recently and growth expectations for 2012 have been increased from 1.7% to 2.2%. The Euro-zone seems to continue its deceleration and growth expectations for 2012 have been lowered to 0.2% from 0.4%. Japan’s recovery remains fragile, but growth is expected to remain unchanged at 1.9%, mainly due to government support.
Growth in China remains resilient and, while slightly slowing, expectations for 2012 have been lowered from 8.7% to 8.5%. India is now forecast to grow by 7.4%, revised down from 7.5% in the previous month. Downside risks prevail for the world economy and close monitoring will be needed on the Euro-zone debt crisis, slowing activity in the developing economies and the improvement of the US economy.
World oil demand in 2012 is forecast to grow by 1.1 mb/d in 2012, following growth of 0.9 mb/d last year, unchanged from the previous report. The OECD region is expected to consume less oil than last year; however, non-OECD oil demand is likely to grow by more than 1.0 mb/d. The pace of oil demand growth in some non-OECD countries is expected to be lower than in the previous year.
Higher prices for retail petroleum products could also negatively affect oil demand across the globe. The transportation and industrial sectors would likely be the most affected, with the use of oil in both sectors slowing noticeably worldwide.
Source: OPEC
