Global ETF News Older than One Year
Emerging economies alter dynamics of oil demand
August 19, 2010--Emerging economies have upended the long-standing pattern of global oil consumption, according to the west’s energy watchdog, in a further sign of how countries such as China and India are transforming commodities markets
The International Energy Agency estimates that oil demand was higher this year during the second quarter for the first time, at about 86.6m barrels a day, ahead of the traditional peak winter season of January-March, at 86.0m b/d.
Source: FT.com
Eurekahedge Monthly-July 2010
August 19, 2010--Highlights from this month’s report are as follows:
Inflows to US hedge funds crossed US$30 billion July YTD.
All regions and strategies posted positive returns and asset flows in July.Mbr>UCITS III hedge funds attracted further inflows of US$5 billion July YTD.
Event driven funds rose 48.4% since November 2008 and gained US$25 billion through 15 months of net positive asset flows.
Source: EurekaHedge
High stockpiles push oil prices below $75 level
August 18, 2010--Oil slid below $75 a barrel in intraday trade after the US reported its commercial petroleum inventories climbed to the highest levels on record.
The US Department of Energy said stockpiles of crude oil and refined products rose to 1.13bn barrels last week, the most oil companies have stocked away since weekly records began in 1990. Monthly records indicate higher inventories in the early 1980s. The data exclude oil in the government-controlled strategic petroleum reserve
Source: FT.com
BofA Merrill Lynch Fund Manager Survey Finds Bearish Sentiment Waning as Risk Appetite Improves
Investors Move out of Japan and U.S. and into Europe
August 17, 2010--Bearish sentiment among investors about the outlook for the global economy and corporate earnings has eased, according to the BofA Merrill Lynch Survey of Fund Managers for August.
The survey shows a net 5 percent of respondents predicting that the global economy will improve in the next year. This represents a modest turnaround from July when a net 12 percent of respondents predicted the world economy would deteriorate.
While the percentage of respondents expecting below-trend growth and inflation remained unchanged at 73 percent in August, the survey shows recession fears easing. A net 78 percent of respondents think a double-dip recession is unlikely. After a deflation shock last month, investors have shifted their focus back towards inflation.
The survey shows an almost neutral view on the prospects for a rise in global inflation in the next year. Just 1 percent of respondents expect inflation to be lower in 12 months' time, compared to a net 12 percent in July. In addition, a net 14 percent of asset allocators indicated that global monetary policy is too stimulative, compared to just 5 percent in July. Nonetheless, 55 percent of respondents to the global survey are ruling out any rate hike in the U.S. before the third quarter of 2011.
A key indicator tracking investors' risk and liquidity conditions returned to an almost neutral reading, indicating an improvement in sentiment.
Source: Bank of America
Short-Term Energy Outlook-EIA
August 18, 2010--On August 10, 2010 the US Energy Information Administration (EIA) published the Short-Term Energy Outlook report
Highlights
EIA projects that the West Texas Intermediate (WTI) spot price, which ended July at more than $78 per barrel, will average $81 per barrel in the fourth quarter of 2010 and $84 per barrel in 2011, slightly above the forecasts in last month's Outlook.
EIA expects that regular-grade motor gasoline retail prices, which averaged $2.35 per gallon last year, will average $2.77 per gallon over the second half of 2010, up one cent per gallon from the average for the first half of the year.
The projected Henry Hub natural gas spot price averages $4.69 per million Btu (MMBtu) this year, a $0.74-per-MMBtu increase over the 2009 average, but virtually unchanged from the forecast in last month's Outlook. EIA expects the Henry Hub spot price will average $4.98 per MMBtu in 2011, down $0.19 per MMBtu from last month's Outlook.
The annual average residential electricity price increases only moderately over the forecast period, averaging 11.6 cents per kilowatthour (kWh) in 2010, up slightly from 11.5 cents per kWh in 2009, and rising to 11.9 cents per kWh in 2011.
Estimated U.S. carbon dioxide (CO2) emissions from fossil fuels, which declined by 7.0 percent in 2009, are expected to increase by 3.4 percent and 0.8 percent in 2010 and 2011, respectively, as economic growth spurs higher energy consumption. However, even with these increases, projected emissions remain below their level in any year from 1999 through 2008.
Global Crude Oil and Liquid Fuels
Crude Oil and Liquid Fuels Overview. EIA's view of the world oil market is largely unchanged from last month's Outlook. EIA expects world oil prices will rise slowly as world oil demand increases because of projected global economic growth, slower growth in non-OPEC oil supply, and continued production restraint by members of the Organization of the Petroleum Exporting Countries (OPEC). A gradual reduction in global oil inventories expected over the forecast period also should lend support to firming oil prices.
Source: US Energy Information Administration (EIA)
Germany and the United Kingdom drive stronger GDP growth in the European Union but, growth slows in Japan and the United States
GDP growth - Second quarter of 2010
August 18, 2010--Gross domestic product (GDP) in the OECD area rose by 0.7% in the second quarter of 2010, the same rate as in the previous quarter. Real GDP grew by 1% in both the euro area and the European Union driven by record growth of 2.2% in Germany; its highest rate since reunification.
GDP growth was 1.1% in the United Kingdom, up from 0.3% in the previous quarter; 0.6% in France, up from 0.2%; and 0.4% in Italy, unchanged from the previous quarter. By contrast, GDP growth in Japan and the United States slowed to 0.1% and 0.6% respectively, compared with 1.1% and 0.9% in the previous quarter.
Relative to a year earlier, GDP in the OECD area expanded by 2.8%, up from 2.4% in the previous quarter. Germany at 3.7% had the highest rate and Italy (1.1%) the lowest.
Source: OECD
Oil hovers above $75 amid economic fears
August 17, 2010--Oil prices edged up in Asia for the first time in five days on Tuesday with gains tempered by signs of a slowing global economic recovery that could dent demand for fuel.
Benchmark crude for September delivery was up 14c to $75.38 a barrel at afternoon Kuala Lumpur time in electronic trading on the New York Mercantile Exchange. The contract fell 15c to settle at $75.24 a barrel on Monday.
Source: FIN24
Barclays forecasts continued strong fundamental support for copper, tin and lead
August 17, 2010--In a recently published analysis, Barclays Commodities Research analysts say they "continue to see strong fundamental support for metals like copper, tin and lead."
Meanwhile after the seasonally slow summer, Barclays continues to predict that gold prices "will gain traction later on in the year."
Barclays analysts observed, "PGMs have diverged from gold and silver prices and have instead mapped a separate path that better mirrors that of their base metal counterparts over recent weeks. Constrained mine output and recovering demand, albeit from a weak base, is still set to provide support for PGM prices..."
The analysts expect further upside in the second half of this year with PGMs extending their gains into 2011. However, they warned "although we expect gold and silver to set new highs, and in the case of gold, all-time highs, next year, based on our macro outlook we expect the two metals to start plotting their bon voyage towards levels seen at the start of this year"
Source: Mineweb
BlackRock May Court Sovereign Wealth Funds as Banks Consider Selling Stake
August 16, 2010--BlackRock Inc. may court investors such as sovereign wealth funds as Bank of America Corp. considers a sale of its 34 percent stake in the asset manager, Credit Suisse Group AG’s Craig Siegenthaler said.
New regulatory requirements in the U.S. and Europe may also prompt two other top shareholders, PNC Financial Services Group Inc. and Barclays Plc., to reduce their stakes in the world’s largest money manager, New York-based Siegenthaler said today in a note to clients. BlackRock’s shares available for trading may increase, allowing the stock to be included in larger indexes and cutting volatility, Siegenthaler said.
Source: Bloomberg
Foreign Exchange Hedge Funds Increased 0.54% in July, Parker Index Shows
August 16, 2010--Parker Global Strategies LLC’s index tracking the performance of foreign-exchange hedge funds reported positive returns in July after every major European currency strengthened against the U.S. dollar.
The Parker FX Index returned 0.54 percent in July, compared with minus 0.05 percent during the past three months, according to a statement released today. The best-performing fund in the index returned 6.8 percent, while the worst returned minus 4.9 percent. The median return was 0.27 percent.
“In July, currency markets were defined by a significant decline in the U.S. dollar relative to most Group of 10 currencies,” the statement said.
Source: Bloomberg
