Global ETF News Older than One Year
ETFs enter the next phase of growth
May 14, 2012--Volatile and in some cases stagnating equity markets over the past three years mean investors have increasingly put their hopes in the fixed-income market, and bond ETFs have benefited from this wider industry trend.
They accounted for almost a third of annual inflows into the ETF sector last year and, after a challenging start, the last two quarters saw record inflows.
Source: EFinancial News
ETFS Precious Metals Weekly: Gold Speculative Long Positions Drop to 2008 Lows as Investors Flee to Cash and G-3 Bonds
May 14, 2012--Investors sell gold along with risky assets in normal initial reaction to a risk-off event. As fears Greece may leave the Eurozone have increased, investors have been reducing positions in most liquid "risk" assets and have been moving into G-3 bonds and cash.
The selling of gold is a normal initial reaction to a risk-off event, as gold is generally held as part of investors’ risky asset pool and often sees selling along with other risky assets during the initial phase of a sharp market sell-off (e.g. 3Q 2008). However, with some form of break-up of the current configuration of the Euro increasingly likely, once this initial phase of selling ends, investors will likely re-focus on finding alternative stores of value, with gold standing out as the ultimate alternative hard currency. With central banks remaining strong net buyers of gold so far in 2012, monetary policy expected to remain highly expansionary, China gold imports through Hong Kong at an all time high in March, and India removing its gold excise tax, medium-term fundamental support for gold appears strong. Net speculative longs in the futures market dropped to the lowest level since December 2008 last week (see page 4), indicating gold may be approaching levels attractive to longer-term investors.
South African platinum group metals production down 25% compared to last year. Despite the strong month-on-month increase in South Africa’s mining output in March following rioting and strikes in February, platinum group metal (PGM) production was 25% below yearago levels and 14% below the five year average. Overall mining activity in South Africa dropped by 10% in March from a year earlier. With US auto sales rising at the highest pace in four years and China sales growth also strong palladium’s supply-demand balance is expected to fall into deficit this year according to GFMS.
The week ahead. Markets are likely to remain volatile this week and remain in risk-off mode, with uncertainty over the future of the Eurozone prevailing despite the EFSF agreeing to provide another billion dollar payment to Greece.
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Source: ETF Securities
Semi-Annual Changes to the NASDAQ Biotechnology Index
May 14, 2012--The NASDAQ OMX Group, Inc. announced today the results of the semiannual re-ranking of the NASDAQ Biotechnology Index(R) , which will become effective prior to market open on Monday, May 21, 2012.
The following ten securities will be added to the Index: Cerus, Celldex Therapeutics,, Amicus Therapeutics, Inc., Infinity Pharmaceuticals, Inc., Jazz Pharmaceuticals plc, Orexigen Therapeutics, Pacira Pharmaceuticals, Inc., Raptor Pharmaceutical Corp.and Trius Therapeutics, Inc.
Source: NASDAQ OMX
Dubai Gold & Commodities Exchange Weekly Market Commentary
May 13, 2012--Economic Data Overview
The risk-on, risk-off plays were lost for a while during April as euro/dollar traded sideways in what looked like an endless consolidation pattern, but the market is now obsessed by risk as the outlook for Greece's membership of the euro currency trading bloc continues to deteriorate.
Even the German finance minister has attempted to reassure the market that the Eurozone will have no problem surviving Greece's departure from the euru, but this point ignores the pressure on the other dominos in the chain, Spain and Italy. Gold has always been seen as a defensive play. In the past, when the euro looked to be under unbearable pressure, gold was a beneficiary. However, the market has re-categorised the commodity and now sees gold more as a risk play. It is significant that last week's losses were posted as US and German benchmark bonds touched record low yields. Australia, which had been one of the brightest spots in the global economy has lowered interest rates and is ready to make further rate reductions. The global rate environment is dovish as the world's economy continues to struggle to grow. The prospect of increased liquidity would have boosted gold in the past, but if the dollar is to benefit as the investment of last resort, gold is set to fall further. Next week we expect a test on crucial support at $1550.
Oil has fallen over ten dollars in the last two weeks, its largest decline over this time frame since the middle of 2011. The market has been caught in a supply trap, as production was all that investors were concerned about when geopolitical risk in Iran was the main focus earlier this year, and OPEC responded accordingly. This supply boost was done at a time when US growth prospects were much healthier and the European situation much more benign. The market has prepared for the wrong set of circumstances and oil prices are now suffering as a result. The news that Chinese industrial output was lower than anticipated also hurt the market last week. This week we expect oil to be sold once again and test pivotal support at $94.30.
Intervention in the dollar/rupee last week saw the RBI attempt to keep the decline of the currency at bay. So far, authorities have defended the 54.00 level effectively, but a combination of growth concerns prompting additional interest rate cuts and the twin deficits are weighing on the rupee. In addition, global dollar safe haven buying against all major currencies has made the environment a difficult one in which to short dollars. This week continued rupee selling is anticipated, with a break above 54.00 expected to see the all-time low at 54.30 exceeded. The market will then look to 55.00 and longer term towards 56.60/65.
On Monday investors will look to see if the Greek parties can resolve their differences and come up with a working solution to create a new government, which will allow the country to remain in the euro. The market will focus closely on the Spanish banking situation and for developments in forming a possible bad bank to deal with unrealistically valued property assets resting on balance sheets of all institutions. It is a busy week in terms of data with European, Japanese and German growth numbers scheduled. US CPI and minutes from the FOMC and the Bank of England are also expected. European growth will be of particular importance while the market is anticipating that the German economy may not be as strong as initially perceived and inflation pressures may be building. This will reassert the need for more aggressive growth policies and a move away from the austerity dogma that the German leadership and central bank have been stressing over the past three years. .
Source: Dubai Gold and Commodities Exchange (DGCX)
Egypt, Italy sign debt swap deal
May 13, 2012--Egypt's Minster of International Cooperation and Planning Fayza Abul-Naga has signed an agreement with the Italian government to swap a third tranche of debts worth $100m,
Ahram has reported. The agreement outlined several Italian projects in Egypt such as food safety, agriculture, education and environment.
Source: AME Info
Investors inject more cash into hedge funds -data
May 11, 2012--Investors grappling with volatile financial markets upped their bets on hedge funds over the past month, data from hedge fund administrator GlobeOp shows, indicating renewed confidence in their abilities to cash in on turbulent asset pricing.
Net inflows into hedge funds, as measured by the GlobeOp(GO.L) Capital Movement Index, which tracks monthly net subscriptions to and redemptions from funds managing around $187 billion in assets, rose to 1.24 percent of that total during the month to May 1.
Source: Reuters
ETFs gain as structured products flounder
May 11, 2012--Exchange traded funds are often described as structured products and the boundaries between these two types of financial instruments can seem unclear or confusing to many investors.
But while the ETF industry in general has gone from strength to strength since the financial crisis, structured products have faced an uphill battle to restore investors’ confidence after some failed to deliver promised returns or simply failed altogether.
Source: FT.com
ISE Elects New Member To Board Of Directors
May 11. 2012--The International Securities Exchange (ISE) today announced that Sylvain Mirochnikoff was elected by the Board of Directors for a one-year term to fill a vacancy.
Mr. Mirochnikoff, who is Managing Director of the Institutional Equity Division for Morgan Stanley, will serve as an industry director representing ISE's Primary Market Makers (PMMs).
Visit ise.com for more information
Source: ISE.com
Financial markets still offer opportunities but geopolitical factors will shape 2012, according to new BNY Mellon-sponsored Economist Intelligence Unit research
May 10, 2012--The second annual BNY Mellon-sponsored survey conducted by the Economist Intelligence Unit (EIU) has found that almost half (47%) of respondents believe that we will see the exit from the euro zone of one or more peripheral countries in the next 12 months, and only 17% of survey respondents consider the EU among their top markets for asset price growth potential in the next 12 months.
Meanwhile, the EIU identifies an oil price spike, tied in part to tensions over Iran's nuclear programme, to be the main obstacle to global growth.
A survey of some 800 institutional investors and corporate executives drawn from 77 different countries, The Search for Growth: Opportunities and Risk for Institutional Investors in 2012 examines investor views about the prospects for growth across a range of asset classes, sectors and regions. According to the survey, global investors feel moderately optimistic about growth prospects over the next 12 months, in large part to the apparent stabilisation of the European debt markets, which is buying time for EU member states to engineer an economic recovery. But opinions among survey respondents and interviewees vary widely according to region – especially given the dramatically different growth prospects of emerging Asian and euro zone countries.
view the Search for Growth-Opportunities and Risks for Institutional Investors
Source: BNY Mellon
BlackRock New Report: ETP Landscape Industry Highlights, April 2012
April 10, 2012--Highlights
Fixed income Exchange Traded Products (ETPs) continued to attract the interest of investors, drawing $5.7 billion in net new assets in April. For the January-April 2012 time period, flows into fixed income ETPs reached a new historical high of $25.5 billion, compared with $21.6 billion for the previous best January-April time period in 2009.
Investment grade corporate ETPs have attracted $10.6 billion year-to-date, with new assets already approaching 2011's full year total of $11.4 billion. High yield ETPs have drawn $9 billion year-to-date, surpassing 2011's total of $8.5 billion.
For the month, the global ETP industry gathered net inflows of $0.6 billion, with fixed income inflows partially offset by developed markets equity ETP outflows of $4.9 billion. Global ETP assets now total $1.716 trillion.
Emerging markets equity ETPs have recorded year-to-date 2012 inflows of $13.0 billion, compared with just $0.7 billion in the comparable period last year. The strongest inflows of 2012 came in the first two months of the year.
Source: BlackRock
