Global ETF News Older than One Year
ETF Securities Research-Precious Metals Weekly-The Fed Reduces Misfire Risk and Gold Declines
February 23, 2015--Gold returns to widely watched US$1,200/oz. support on new stock market highs.
Despite an improving foundation on the back of dovish FOMC minutes, precious metals (PMs) declined last week as a Greek debt deal reduced alternative asset demand. Record highs in the S&P 500 appeared to resume the "all that matters" attention drain to the
detriment of the PMs.
Despite the CITI negative economic surprise index reaching a 2-1/2 year high, risk-off remained at play as the VIX closed at a new low for the year at 14.4.
Adding some support to platinum, EU27 car registrations increased a greater than expected 6.7% in January. The latest report on silver from Metals Focus, pointed out that global silver production "may have peaked last year with the low price likely to lead to mine cutbacks and closures". The foundation for PMs is still improving, notably due to central banks continuing to surprise markets with more aggressive stimulus, increasing currency volatility and the recent back-up in prices.
Source: ETF Securities Research
IMF Working paper-Private Sector Deleveraging and Growth Following Busts
February 23, 2015--Summary: Balance sheet recessions have been a drag on activity after the Global Financial Crisis, underscoring the important role of balance sheet adjustment for resuming sustained growth. In this paper we examine private sector deleveraging experiences across 36 advanced and emerging economies countries since 1960.
We consider the common features and divergent experiences of deleveraging episodes across countries, and analyze empirically the impact of different aspects of deleveraging during the bust phase of leverage cycles on subsequent medium-term growth. The results suggest that larger and quicker unwinding of non-financial sector debt overhangs is associated with sizable medium-term output gains, and that policies should focus on facilitating up-front balance sheet adjustment.
view IMF Working paper-Private Sector Deleveraging and Growth Following Busts
Source: IMF
DECPG Global Weekly-February 20, 2015
February 20, 2015--Taking Stock
Eurozone finance ministers reached an agreement to extend Greece's financial bailout by four months. Greece
and its Eurozone creditors agreed to extend the bailout program for four months, avoiding bankruptcy for Athens.
Greek government officials welcomed the agreement, saying that the extension gave the government time to negotiate a "new deal." Greece had been seeking a six-month extension of the bailout but the Eurozone partners opted for four months. The euro gained against the US dollar on Friday following the announcement, adding 0.3 percent to $1.1403, while the Dow Jones industrial average and S&P 500 struck new intraday highs.
Oil prices declined on strong supply data. Oil prices fell sharply after data showed a surge in U.S. crude inventories, adding to concerns over oversupply. A possible increase in production from the world's largest oil exporter, Saudi Arabia, also weighted negatively on the prices. U.S. crude supplies for the week ended February 13th saw a 14.3 million-barrel jump from a week earlier, significantly higher than market expectations of a 3.2 million barrel increase. Brent crude futures declined on Thursday by $2.35 (or 3.9 percent) to $58.18 a barrel on the London Exchange, while West Texas Intermediate (WTI) oil futures fell $2.70 (or 5.2 percent) to $49.44 a barrel on the New York Exchange.
Source: World Bank
At 30, Nasdaq-100 Recognized as Benchmark for Innovation
Growth Companies From Multiple Sectors Diversify Index and Represent the 'New Global Economy'
February 19, 2015--Once considered a pure play on technology stocks, the Nasdaq-100 Index (NDX), which celebrated its 30th anniversary on January 31, 2015, has emerged as the de facto benchmark for broad-based innovation,
representing the "new global economy," according to a recent Nasdaq study titled The Nasdaq-100 Turns 30: Tracking Innovation in Large Cap Growth
Source: Nasdaq.com
Deutsche Boerse sees deal soon with Shanghai Stock Exchange
February 19, 2015--German exchange operator Deutsche Boerse aims to conclude a wide-ranging cooperation agreement with the Shanghai Stock Exchange (SSE) soon, completing a key element to its Asian expansion plans, Deputy CEO Andreas Preuss said.
The deal would give Chinese investors direct access to the German and European financial markets, while German-Chinese financial market infrastructure would be strengthened to build cooperation between the two countries and aid the internationalisation of China's currency, the renminbi.
Source: Reuters
DMS-Deciphering Developing Markets-Investors Should Look to Egypt For New Opportunities
February 17, 2015--Much has been written over the last ten months or so about the truly transformational elections that took place in both India and Indonesia.
However, there has been very little written about another transformational election that took place in another developing world country. That country is Egypt. In June, less than a month after Narendra Modi took office as prime minister of the largest democracy in the world, Abdel Fattah al-Sisi was sworn in as the sixth president of Egypt. And just like his counterpart in India, Sisi has set out to implement unpopular but necessary measures to ensure economic growth in his country.
Source: Peter Kohli of DMS for Nasdaq.com
ETF Securities Research-Precious Metals Weekly-Silver Steals the Show as the Stock Rally Resumes
February 17, 2015--Silver has been one of the best performing commodities in 2015. If the path of least resistance remains up for stocks in this moderate economic growth, low inflation environment, it also appears to be so for silver.
Silver, with over 50% of its demand for industrial use, has the additional relative value attraction of being the most beat-up of the precious metals over the past two years. Add an increase in global currency volatility, on the back of increasing liquidity from most central banks and the historical proxy for 'money' should benefit. It has. Silver increased 3.8% last week for a year-to-date (YTD) gain of 10.5% (behind the 13.3% YTD gain in unleaded gas). Gold remained resilient last week despite new stock market highs. In a similar vein as 2014, gold declined only 0.3% last week as it approached widely watched US$1,200/oz. support. The gold price appears increasingly well poised to appreciate, when the stock market and/or US dollar rally stumbles.
Source: ETF Securities Research
FTSE Announces New GDP Weighted Index to Reflect China's Growing Economic Importance
February 17, 2015--New index captures emerging markets, China A-shares and China N-shares
Furthers FTSE's innovation to help participants prepare for the inclusion of China A-shares in global benchmarks
KraneShares launches ETF tracking new FTSE index
FTSE Group ("FTSE"), the global index provider, has expanded its range of GDP Weighted Indices with the launch of the FTSE Emerging incl. China Overseas non-R/QFII GDP Weighted Index. The new index gives global market participants access to benchmarks comprising of emerging markets and Chinese equities including China A-shares, N-shares and S-chips, which are adjusted by GDP weighting rather than market capitalisation.
Source: FTSE
Alpha smarter than beta
But smart beta assets still double in two years
February 16. 2015--Towers Watson's institutional investment clients globally allocated over $8bn to smart beta strategies during 2014, bringing the total exposure to around $40bn (in 550 portfolios) in these strategies, across a range of asset classes.
This compares to its clients having a $32bn exposure to smart beta strategies at the end of 2013 and $20bn in 2012.
Luba Nikulina, global head of manager research at Towers Watson, said: "Interest in thinking smartly about betas within portfolios remains high but there is a considerable degree of caution about the proliferation of products labelled "smart beta".
Source: Tower Watson
Deutsche Bank Should Mull Split, Smith Writes in Financial News
February 16, 2015--Deutsche Bank AG should consider splitting its investment bank from its retail business, Roy Smith and former Sanford C. Bernstein & Co. analyst Brad Hintz wrote in Financial News Monday.
The firm is battling costs, pressure on margins, poor trading returns, demand for additional capital as well as cultural challenges in its London-based securities unit, according to Smith, finance professor at New York University's Stern School of Business, and Hintz, adjunct professor at Stern.
Source: Bloomberg
