Global ETF News Older than One Year
New policies needed to adjust to new dynamics in world economy-UN report
October 14, 2013--Countries must adopt new economic policies to adjust to structural changes in the world economy sparked by the onset of the global financial crisis five years ago, according to a new United Nations report.
\The Trade and Development Report 2013 notes that developed countries have so far addressed the crisis by implementing stimulus measures that rely on expansionary monetary policies, but these have been unsuccessful in fostering growth, as they have been combined with fiscal austerity and subdued private demands.
Instead, the report, which was produced by the UN Conference on Trade and Development (UNCTAD), argues that Governments must addressthe fundamental causes of the crisis, in particular rising income inequality, the diminishing role of the States, and the predominant role of the poorly regulated financial sector.
view the UN TRADE AND DEVELOPMENT REPORT, 2013
Source: UNCTAD.org
Global ETF investors favour growth assets over defensive
October 14, 2013--Despite the current US government situation and the impending US debt ceiling debate, global exchange-traded fund (ETF) investors have continued to favour higher-risk assets over defensive investments, according to research released by State Street Global Advisors (SSgA).
The total global ETF flows reached US$32.1 billion in September, with inflows into the ETF market of $US27.1 billion. This brought the total asset value of global ETFs to $US2.2 trillion. Investors particularly favoured large cap developed equities with higher beta strategies.
The Australian ETF industry differed slightly to the rest of the globe for September, however. While flows were certainly still positive, there were only inflows of $78 million.
Source: Investor Daily
First release of G20 Consumer Price Index shows slowing annual inflation at 3.0% in August 2013
October 14, 2013--Today's release of the G20 Consumer Price Index (CPI) marks the second release of a G20 aggregate statistic following the first publication of aggregate quarterly G20 GDP estimates on 14 March 2012.
The releases on G20 aggregates contribute to the implementation of the G20 Data Gaps Initiative-a set of 20 recommendations on the further enhancement of statistics as agreed by the G20 Finance Ministers and Central Bank Governors. The process is coordinated by the Inter-Agency Group on Economic and Financial Statistics: Bank for International Settlements, European Central Bank, Eurostat, International Monetary Fund (chair), OECD, United Nations and the World Bank.
The G20 CPI provides a timely measure of inflation for the G20. In the future, the G20 CPI will become part of the regular OECD monthly News Release on CPI at around one month after the reference period.
Annual inflation in the G20 area was 3.0% in the year to August 2013, down from 3.2% in the year to July 2013.
Source: IMF
SSgA-Global ETF Snapshot-September 2013
October 14, 2013--GLOBAL ETF LISTING REGION
The United States had over $32.1BN of inflows in the month of September, increasing its year-to-date inflows to $128.0BN. Europe experienced inflows of $1.3BN in September, increasing its year-to,date inflows to $9.8BN. APAC had minor outflows.
GLOBAL PERFORMANCE BY ASSET CLASS
MSCI AC World IMI increased 5.4%, while MSCI EAFE® gained 7.4%. Emerging Markets returned 6.5% while Emerging Markets Small Cap jumped 5.8%. US Large Cap, Mid Cap and Small Cap markets were all positive, increasing 3.1%, 5.2% and 6.2%, respectively. The Global Aggregate gained 2.1% and the Global Treasury Ex US grew 2.6%. The US High Yield, the US Aggregate, the US Treasury and the US Corporate Bond markets were all positive in September. The US REIT market was up 3.2%. Commodities were negative, with the Dow Jones-UBS Commodity Index losing 2.6% and Gold dropping 4.9%.
GLOBAL ETF FLOWS BY ASSET CLASS
Global ETF inflows topped $32.1BN in September. Equity had inflows of $27.1BN. The Equity inflows were driven by Developed Market Large Cap Equity, which had $11.6BN in inflows. Fixed Income had inflows of $5.5BN, which were driven by inflows of $3.7BN in Developed Market Treasuries.
ETF Manager & Fund Detail
MANAGER DETAIL
The top three families in the Global ETF marketplace were: BlackRock, State Street and Vanguard. Collectively, they account for approximately 70% of the Global ETF market.
Source: SSgA
ETFS Precious Metals Weekly-Palladium Benefits From Strong China Auto Demand
October 14, 2013--Gold whipsawed by gyrating sentiment about possible US debt deal. The US fiscal and debt impasse continues to whipsaw markets, with gold falling below US$1,300oz last week on indications a short-term debt ceiling increase might find bipartisan agreement.
However, with the estimated 17 October debt ceiling breach looming and no further progress over the weekend, markets are back in risk-off mode, with gold pushing higher again. Political misjudgement and resulting default (or even near default) would not just severely damage the US economy and the longer term faith in the US government's commitment to repaying its debt, but would also have large negative reverberations across global financial markets and economies. Most investors appear to be betting that the consequences are so huge that even US politicians will eventually act rationally and find agreement. The risk, however, is that irreparable damage has already been done to investors' long-term faith in the US's commitment to honouring its debt obligations, further accelerating investors search for alternatives to the US dollar as a reserve asset. With Europe still facing serious structural issues and China not yet ready to step up to the plate, in our view, gold's role as an alternative hard currency and reserve diversifier with continue to grow.
Source: ETF Securities
Emerging Europe and Central Asia is On the Rebound
Modest growth supported by the recovery in the Euro Area is still vulnerable to emerging financial risks and structural challenges
October 11, 2013--Economic growth in the Emerging Europe and Central Asia (ECA) region suffered during the global financial and Eurozone crises but has started to rebound, with projected modest growth rates of 2.2. percent in 2013 and 3.1 percent in 2014, World Bank officials said at a press briefing during the 2013 World Bank/IMF Annual Meetings.
However, compared to other regions in the world, the ECA region has had the slowest recovery of growth and remains vulnerable to risks in a dynamic global economy.
view the Regional Brief-Europe and Central Asia
Source: World Bank
DIY investment - a crisis in the making?
October 11, 2013--It was nearly seven years in the making. It has been the dominant theme in the retail asset management industry for much of the past few years.
Now, the effects of the retail distribution review are being felt by the people it is meant to safeguard: consumers.
Source: FT.com
SPDR Market Commentary-Weekly Market Report
October 11, 2013--ECONOMIES: Consumer confidence erodes in the US. Employment rises modestly in Canada and Australia. The Bank of England leaves policy unchanged. Industrial production is distinctly mixed in the eurozone.
Machine orders jump in Japan. Janet Yellen is nominated to lead the Fed.
MARKETS: The US government shutdown continues but negotiations on the debt ceiling have finally begun. Equities rise. US Treasury bills come under pressure. USD catches a bid. Gold falls.
NEXT WEEK PREVIEWED SPOTLIGHT:
The US Treasury says the debt ceiling must be raised by next Thursday, October 17. US housing starts and CPI inflation for
September appear likely to be delayed because of the continuing government shutdown. CPI inflation should slow in Canada, the UK and France.
visit https://www.spdrs.com/ for more info
Source: SSgA
DECPG Weekly Global Economic Brief -Economics and Financial Market Commentary
October 11, 2013--The stalemate in US budget negotiations and rising concerns about a potential technical default on US debt has
gradually affected market confidence. Contagion to developing countries has been limited but is likely to increase in the absence of a lasting resolution. Investment spending showed signs of improving further in the third quarter in high income economies, supported by strong consumer spending and still easy financial conditions.
The outlook, however, remains vulnerable to downside risks from fiscal policy uncertainty in the US. Officially recorded remittance flows to developing countries are projected to increase by 6.3 percent to reach $414 billion in 2013.
As the 17 October deadline for raising the US debt ceiling approaches, markets are re-pricing risk on key US assets. Since September 19, the US S&P 500 is down 3.3 percent, the VIX risk index up 14 percent and yields on 1-month US T-bills have increased sharply. Spillovers to developing countries have been muted thus far, with stock markets correcting 0.8 percent over the same period and bond spreads only up 9 basis points. However, contagion is likely to increase in the absence of a lasting resolution. A similar stand-off during the August 2011 US debt ceiling debate left significant financial turbulence in its wake despite a final hour deal. In the months that followed, developing countries' spreads rose 75bp, while stock markets and bond and equity issuances fell by 15 and 50 percent respectively. Past the October 17 deadline, the impact of an actual technical default are difficult to predict and will heavily depend on containment strategies. But a crisis scenario with consequences comparable to those of the 2008 financial crisis is possible.
Source: World Bank
China is the biggest danger to emerging market rally
October 10, 2013--Will emerging markets make a comeback in 2014? Although it may seem unlikely given the losses seen during the summer, some strategists and fund managers think so.
Investor nervousness sparked by the US government shutdown and looming debt ceiling have capped the gains of stocks, bonds and currencies in the developing world, but September was nonetheless a positive month for most markets.
Source: FT.com
