Global ETF News Older than One Year
ETFS US Precious Metals Weekly:Precious Metals Rally After Greek Bailout Deal Agreed
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.
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.
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Source: ETF Securities
CME Group and Oman Investment Fund to increase investments in Dubai Mercantile Exchange, Dubai Holding Retains 9% Stake
Partnership Will Build on Volume Growth with Increased Investment and Support
February 21, 2012-CME Group, the world's leading and most diverse derivatives marketplace, and Oman Investment Fund, a sovereign wealth fund of the Sultanate of Oman, today announced that they will increase their investments in the Dubai Mercantile Exchange to enable it to continue growing its business.
As part of the restructuring of the DME’s equity shareholding, a recapitalization arrangement will increase the stake in DME held by CME Group’s NYMEX division from 25 percent to 50 percent. Oman Investment Fund will increase its holding to 29 percent; a subsidiary of Dubai Holding will retain 9 percent; and 12 percent will be held on a non-voting basis by strategic investors, including Vitol, Shell, JP Morgan, Morgan Stanley, Goldman Sachs and Concord Energy.
Source: Dubai Mercantile Exchange (DME)
Finansinspektionen: High Frequency Trading Not A Threat To Financial Stability
February 21, 2012--High frequency trading contributes to-but is not responsible for-changes in trading. But there is still considerable concern that market abuse has increased and supervision is insufficient. These are the main conclusions from Finansinspektionen's investigation.
FI’s investigation has demonstrated that the impact of high frequency trading on trading is smaller than feared. Swedish investors believe that trading has undergone a transformation and that the market has become more volatile, but that these changes can be explained by multiple factors and not only the emergence of high frequency trading.
International research indicates that the risk for financial stability is limited even if the growing technological advancements in trading can create uncertainty on the market. However, there is also considerable concern among Swedish investors that market abuse has become more widespread and difficult to identify.
FI’s investigation was conducted during the winter of 2011. It includes both the industry’s view on high frequency and algorithmic trading and the current research published in the area.
view the FI report summary-Investigation into high frequency and algorithmic trading
Source: Finansinspektionen(Swedish Financial Supervisory Authority)
FTSE Group Lanches FTSE WPU: A Stable Global Currency Unit For Wealth Preservation
February 21, 2012--FTSE Group, the award-winning global index provider, today announces the launch of the FTSE Wealth Preservation Unit (WPU), a stable global currency unit which aims to allow global investors to preserve wealth over the long-term by providing protection from currency and inflation risk.
Currency exposure is an unplanned consequence of international asset allocation but currency swings can have a large impact on wealth. In addition, paper currencies risk the loss of purchasing power as inflation destroys wealth. In response to this investment challenge and in consultation with US currency firm Mountain Pacific Group, FTSE WPU provides investors with a transparent and reliable tool which aims to mitigate both risk of loss arising from changes in relative valuation in currencies, as well as internal loss from inflation erosion of purchasing power in order to preserve wealth over the long-term.
Source: FTSE
IOSCO consults on suitability requirements for complex financial products
February 21, 2012--The Technical Committee of the International Organization of Securities Commission (IOSCO) has published a consultation report-Suitability Requirements with respect to the Distribution of Complex Financial Products (Suitability Requirements)-which sets out proposed principles relating to the customer protections, including suitability and disclosure obligations, which relate to the distribution by intermediaries of complex financial products to retail and non-retail customers.
The report was prompted by concerns regarding the assessment of customer suitability in relation to the distribution of complex financial products arising out of and in connection with recent market turmoil. It also supports the call by the G20 for action to review business conduct rules.
Source: IOSCO
No improvement in BRICs capacity to withstand shocks from global risks despite economic growth-Maplecroft Global Risks Atlas 2012
February 20, 2012--According to a major new report, the BRIC countries of Brazil, Russia, India and China are no better placed to withstand shocks from major risk events than they were four years ago.
The findings of the Global Risks Atlas 2012, released by risk analysis firm Maplecroft, indicate that strong economic performance in the BRICs has not translated into improved societal resilience or governance, which constrain a country’s ability to adapt and combat potential shocks from pandemics, terrorism, conflict, resource security, economic contagion and the impacts of climate change.
“With hopes for a global economic recovery resting with the BRICs, investors and business seeking new high-growth, high-risk markets need to be aware of their limited resilience to global risks.” states Maplecroft CEO Alyson Warhurst. “A country’s resilience to external and internal shocks is built up over time, so as the BRICs political risk environment improves we might see resilience strengthen, but our results reveal this is yet to happen.”
Source: Maplecroft
BRICs no less vulnerable to global risks
February 20, 2012--BRIC countries have not become less vulnerable to global shocks despite their strong economic growth over the past four years, a survey showed on Monday.
Risk consultancy Maplecroft said its Global Risk Atlas, which highlights potentially destabilising factors in the world's key growth economies, found that Brazil, Russia, India and China were no less susceptible to potential security or economic shocks than in previous years.
Source: Reuters
Investment in ETFs through wrap platforms increases as RDR draws closer
February 20, 2012--iShares, the Exchange Traded Funds (ETF) platform of BlackRock, Inc., saw its assets held on wrap platforms increase by over a third in 2011 and by 175% on a cumulative basis since Q1 2010.
This comes as financial advisers’ understanding of the benefits of implementing investment strategies via ETFs continues to grow.
iShares saw its assets held on six platforms reach £746 million at the end of 2011, an increase of 34% over the same period in 2010.
Source: IFA Magazine
IOSCO consults on Principles for Ongoing Disclosure for Asset Backed Securities
February 20, 2012--The Technical Committee of the International Organization of Securities Commission (IOSCO) has published a consultation report--Principles for Ongoing Disclosure for Asset Backed Securities (ABS Ongoing Disclosure Principles)-containing principles designed to provide guidance to securities regulators who are developing or reviewing their regulatory regimes for ongoing disclosure for asset-backed securities (ABS).
The objective of the ABS Ongoing Disclosure Principles is to enhance investor protection by facilitating a better understanding of the issues that should be considered by regulators in developing or reviewing their ongoing disclosure regimes for ABS.
view the Principles for Ongoing Disclosure for Asset-Backed Securities Consultation Report
Source: IOSCO
Overnight Markets: S&P hits nine-month high on strong economic data
February 17, 2012--Strong US economic data and optimism that Greece will receive a second bailout next week sent the Standard & Poor's 500 Index to a nine-month high on Thursday.
The benchmark index climbed 15 points, or 1.1%, to 1,358, posting its strongest percentage gain in two weeks. The Dow Jones industrial average rose 123 points, or 0.96%, to 12,904. The Nasdaq Composite Index gained 44 points, or 1.51%, to 2,960.
Financials, technology and materials led the rally with Americans filing the fewest claims for jobless benefits since 2008 and builders broke ground on more homes than forecast. Manufacturing in the Philadelphia region increased in February at the fastest pace in four months as orders and sales picked up.
Source: Wealth Manager
