Global ETF News Older than One Year
Continuing Slowdown in Emerging Markets Heralds Lengthy Era of Weak Growth
December 8, 2015--As the U.S. Federal Reserve considers an imminent rise in interest rates ahead of 2016, emerging markets face their fifth consecutive year of slowing growth and a possibly longer period of sluggish performance than previously thought, according to a new World Bank Policy Research Note: Slowdown in Emerging Markets: Rough Patch or Prolonged Weakness?
Since 2010, emerging market growth has been buffeted by global headwinds such as weak international trade, slowing capital flows, and slumping commodity prices, external challenges which have compounded domestic problems including blunted productivity and bouts of political uncertainty.
Source: World Bank
Macquarie-ETF Flows-November 2015
December 8, 2015--November saw ETFs add $28b in assets bringing the total asset gathering this year to $303b. DM equities led adding $29 billion amid positive data from the US and a pledge by the ECB to continue to support the economy by all means necessary.
EM equities reversed back to outflows ($2.5) led by China and South Korea. Fixed income ETFs were flat driven by an increased expectation of a Fed liftoff this year. US treasuries shed $4.5b followed by European sovereigns. Another months of net inflows for commodities ETFs driven by a steep fall in crude driving funds into oil ETFs.
US equities ETFs had their best month so far this year. Positive macro data drove $22 billion of new funds mainly to large caps favouring technology and financials.
Source: Macquarie Securities Group
Mifid II research rules will clash with US law, industry warns
December 8, 2015--Ban on 'free' research will harm smaller firms, say banks and asset managers
European Union plans to force asset managers to pay separately for research will cause clashes with US law and put smaller firms at a disadvantage, according to banks and asset managers. The proposed second Markets in Financial Instruments Directive (Mifid II) recommends doing away with the current model, in which asset managers pay for research indirectly through trading commissions and spreads, forcing them to pay for this separately. Market participants say banning the indirect approach will...
Source: risk.net
State Street Global Advisors-2016 ETF & Investment Outlook
December 7, 2015--Key Points
In 2016, we expect continued low growth, subdued inflation and generally accommodative monetary policy.
Risks are skewed to the downside as fragile markets could quickly turn volatile on a single bad data point or negative news event.
In equities, we favor areas of growth with macro-economic tailwinds such as the Eurozone, Japan, and financial and consumer related sectors in the US.
In fixed income, we favor taking a balanced approach with a mix of interest rate and credit sensitive sectors such as high yield and senior loans.
THE BIG PICTURE
Investing in a "Low and Slow" Growth Environment
Key Takeaways
Our base case for 2016 is that investors should be prepared for more of the "low and slow" growth that has characterized the global economy since the financial crisis. That means in equities, we believe investors should look for pockets of opportunities and growth.
Outside the US, tilting to the Eurozone and Japan where the accommodative and pro-growth macro currents provide the strongest tailwinds is ideal.
For the US, a resilient consumer and a potential Federal Reserve rate hike should continue to support and fuel top and bottom line growth in consumer related and financial sectors.
In fixed income, still-low government bond yields and the desire for protection from potentially rising rates mean investors may have to explore more credit-sensitive sectors including high yield, senior loans and convertibles.
Source: spdru.com
BATS Global Markets Reports Strong Market Share in U.S. and European Equities, U.S. Options; Welcomes Eight New ETFs in November
BATS Markets Executed $106.4 Billion of Notional Value per Day in November
November 7, 2015--BATS Global Markets (BATS) today reported November data and highlights including one of its best months on record for its European Equities business, with 25.3% market share.
In all, the BATS markets executed $106.4 billion of notional value per day in November. For the fourth month in a row, BATS was the largest equities market operator globally handling more than $1.31 trillion notionally.
Source: BATS Global Markets, Inc.
BetaShares-Global Market Outlook December 2015: Getting comfortable with the Fed
December 7, 2015--After some jitters in August and September, global markets appear to be getting comfortable with the prospect of Fed tightening by year-end. Global equities posted a further modest gain (in local currency or hedged terms) during November, after a solid gain in October.
Australian equities underperformed, however, dragged down by the weakness in commodity prices and disappointment that the RBA did not cut interest rates as (briefly) expected by the market. Property stocks also took a tumble last month.
Source: BetaShares
ETF Securities Commodity ETP Weekly-Sell the rumour buy the fact
December 7, 2015--Gold bounces higher as the 2015 US rate hike becomes a near certainty and the market falls prey to the classic- sell
the rumour buy the fact.
Oil prices under further pressure after OPEC maintains status quo.
Flows into copper ETPs rebound after top Chinese smelters agree to cut back on supply.
Inflows into energy ETPs persist for the 4th consecutive week despite OPEC maintaining status quo. Energy ETPs recorded net inflows of US$39.3mn, driven largely by WTI crude oil ETPs and natural gas ETPs. As predicted hopes pinned on the
OPEC meeting in Vienna this week disappointed investors as they stayed pat on maintaining current production levels despite the ongoing supply glut.
Source: ETF Securities
Russia to issue yuan bonds worth $1bn
December 6, 2015--Federal loan bonds denominated in Chinese yuan will be issued on the Moscow Exchange in 2016, the director of the debt department of the Russian Finance Ministry Konstantin Vyshkovsky said Friday.
The $1 billion is only the minimum amount, according to the ministry.
Source: rt.com
December 2015 BIS Quarterly Review: Uneasy calm awaiting lift-off
December 6, 2015--The December issue of the BIS Quarterly Review explores how global financial markets have responded in recent months to the prospect that monetary policy paths will diverge across the major advanced economies.
Markets stabilised in October, following the episode of turbulence that took place in August.
In November, strong macroeconomic data from the United States increased the likelihood of a "lift-off" in the Federal Reserve's policy rate. The prospects for higher US rates posed challenges for a number of emerging market economies (EMEs), including currency weakness, higher bond yields, and possible capital outflows.
< href="http://www.bis.org/press/p151206.htm" TARGET="_top">view more
view the BIS Quarterly Review December 2015 International banking and financial market developments
Source: BIS
DECPG Weekly-December 04, 2015
December 4, 2015-Taking Stock
U.S. job growth exceeded expectations in November. U.S. non-farm payroll employment increased more than expected in November, by 211,000 jobs. Meanwhile, the employment gains in October and September were upwardly revised to 298,000 (from 271,000) and 145,000 (from 137,000), respectively.
The unemployment rate held steady at 5 percent, in line with expectations. Average hourly earnings rose 0.2 percent (m/m), putting the annual increase at 2.3 percent, compared with 2.5 percent in October.
ECB unveiled new stimulus measures. In a range of additional measures aimed at boosting growth and lifting inflation, the European Central Bank (ECB) cut its deposit rate to -0.3 percent from -0.2 percent, pledged to continue its monthly asset buying program for another 6 months, until at least March 2017, and broadened the asset purchases to include debt instruments issued by regional and local governments in the euro area. However, the measures fell short of market expectations. The euro surged as high as 3 percent against the U.S. dollar to $1.0935 on Thursday, the biggest daily gain since late August, but has since fallen back somewhat.
Source: World Bank
