Markit Adds Social Media Indicators to Research Signals Suite
In a partnership with Social Market Analytics, users of the research platform will receive more investor sentiment signals.
March 4, 2014--Markit, the financial services IT provider, announced a partnership with Social Market Analytics (SMA) to provide new signals of investor sentiment from social media inside the Markit Research Signals suite.
"The social media indicators enhance the Markit Research Signals suite of more than 400 investment factors which can be used by customers to evaluate the expected performance of stocks-based sentiment indicators," according to a Markit press statement.
Source: Securities Technology Monitor
SSgA rollouts pooling smart beta strategies
March 3, 2014--State Street Global Advisors is planning to roll out a series of exchange traded funds that combine multiple smart-beta strategies into a single index product.
t would be the latest ETF provider to roll out so-called multi-factor strategy funds, which combine typical smart-beta factors such as momentum, volatility and size into a single product.
Source: FT.com
Belief in easy money boosts active funds
March 3, 2014--Active management favoured despite outperformance of passive funds
The decline and fall of Mt Gox, the Tokyo-based Bitcoin exchange, is a cautionary tale for our time.
It speaks to the fear and greed narrative that seems to guide much investment thought and action and leads people to suspend disbelief in the hopes of getting rich quick..
Source: FT.com
Average daily volume of 7.9 million contracts at Eurex Group in February
March 3, 2014--In February 2014, the international derivatives markets of Eurex Group recorded an average daily volume of 7.9 million contracts (Feb 2013: 8.7 million). Of those, 5.4 million were Eurex Exchange contracts (Feb 2013: 6.3 million), and 2.6 million contracts were traded at the U.S.-based International Securities Exchange (ISE) (Feb 2013: 2.7 million).
In total, 157.4 million contracts were traded, thereof 108.9 million at Eurex Exchange and 48.5 million at the ISE.
Eurex Exchange recorded in its equity index segment, the largest product segment, 50.7 million contracts compared with 56.9 million contracts in February 2013. Futures on the EURO STOXX 50(R) Index stood at 19.4 million contracts while 20.2 million options on this index were traded. Futures on the DAX totaled 2.1 million contracts while the DAX options reached another 3.0 million contracts. The Eurex KOSPI product reached 2.4 million contracts.
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Source: Eurex
ETF Securities-Precious Metals Weekly-Precious Metals in Demand as Political and Economic Risks Heat Up
March 3, 2014--Gold and defensive assets in demand as political and economic risks heat up.
February continued the strong run for precious metals, with gold, silver, platinum and palladium all seeing healthy gains. So far this year all of the metals have done well, with
gold benefiting from US growth concerns and emerging market currency jitters, silver acting increasingly like a leveraged play on gold and platinum and palladium prices rising on a
growing supply-demand imbalances as South Africa labour strife continues.
With Russia rattling its sabre in the Ukraine, macro imbalances in some key emerging market economies still unresolved and continued uncertainty about the strength of US, Europe and Japan recoveries, demand for perceived safe havens such as gold should remain strong in our view.
Platinum price rallies as South Africa strike enters 6th week. The platinum spot price rose 2.3% last week and is now up 7.2% year-to-date. Consensus estimates of 6-8 weeks of metal supply held by the producers may have weighed on price performance earlier this year, but if the labour impasse in South Africa (over 70% of platinum supply) is not resolved soon we could see further price upside on concerns of a supply squeeze. The palladium price has also increased, though to a lesser degree, as around 40% of palladium supply comes from South Africa and investors continue to bet on strong China and US demand for palladium for use in gasoline autocatalysts. US and Japanese car sales data out this week could be a further catalyst for platinum group metals this week.
Source: ETF Securities
DECPG Weekly Brief-February 28, 2014
February 28, 2014--GDP growth moderated in China, but firmed among other developing countries in the final quarter of 2013, and
remained steady in high income countries.
A fourth quarter acceleration in capital goods orders in both developing and high-income countries bodes well for future growth prospects. Price-to-earnings ratios of equities in developing countries have remained depressed since 2011, partly reflecting slower growth, weaker commodity prices, and increased risk perceptions.
Notwithstanding weaker Chinese growth, GDP growth in most developing countries picked up in Q4 2013. The annualized pace of GDP growth in developing countries (excluding China) picked up from 4.8 percent to 5.6 percent in 2013Q4. In China, growth slowed from an annualized 9.3 percent to 7 percent amid rising uncertainties about investment and corporate debt and the waning effects of an earlier mini-stimulus. Weak domestic demand (partly reflecting policy tightening) resulted in slowing industrial activity in India and disappointing fourth quarter GDP growth in Mexico. By contrast, growth in East Asian countries excluding China continued to strengthen, supported by acceleration in exports, as well as robust domestic demand in Indonesia, Malaysia and the Philippines. Similarly, the Europe and Central Asia region benefited from strengthening Euro Area demand. South Africa’s growth accelerated in Q4 as the effects of earlier strikes on domestic activity waned. Growth in high-income countries remained stable at about 2 percent, buoyed by robust private demand, and a pickup in exports in Germany, France and the United States. Growth in Q4 in Japan was a modest 1 percent as the effect of stimulus measures waned and the country prepares for structural reform.
Source: World Bank
Proposed A-shares ETFs could transform investors' approach to China
They would gives Westerners access to a broader swathe of the economy
February 27, 2014--Filling the pipeline of SEC filings are more than a dozen new ETFs that could potentially change the way investors access Chinese stocks.
The proposed funds, which total at least 15-mostly, from Van Eck Associates and Deutsche Bank AG- promise to offer ETF investors fine-grained exposure to the newly liberalized market for Chinese A shares, which are stocks traded on exchanges in Shanghai and Shenzhen.
Source: Invesstment News
China's yuan dislodges Swiss franc as 7th most-used currency: SWIFT
February 27, 2014--China's yuan surpassed the Swiss franc to become the seventh most-used world payments currency in January, global transaction services organization SWIFT said on Thursday.
With a market share of 1.39 percent, the yuan remained one of the top 10 most-used currencies for payments worldwide for the third consecutive month. It ranked eighth in December.
Source: Reuters
Source Aims to Grow ETF Assets to $50bn
February 27, 2014--Source, the European exchange-traded fund provider, aims to triple assets following its sale of a majority stake last month to Warburg Pincus, the private equity firm.
As a result of the deal Lee Kranefuss, an executive-in-residence at Warburg Pincus, has joined Source as executive chairman to work with the management team led by chief executive Ted Hood. Kranefuss was previously global chief executive of iShares but left after the ETF provider was sold by Barclays Global Investors to BlackRock.
Source: MaketsMedia.com
World Bank Food Price Watch, February 2014: Prices Decline at a Slower Pace; Focus on Food Loss and Waste
February 27, 2014--Prices of internationally traded food commodities continued to decline-by 3%-between October 2013 and January 2014, adding another quarter to previously observed price declines since the August 2012 historical high. Record harvests in wheat, maize and rice, increasing availability of supplies, and stronger global stocks have continued to drive down prices.
Yet, international prices are still not overly far from their historical peak. Upward pressures from weather concerns and increasing demand, and downward risks from the effects on export prices of an increasingly contested Thai rice procurement program continue to require close monitoring.
view the World Bank report-Food Price Watch
view the infographic-Food Loss and Waste
Source: World Bank