Global ETF News Older than One Year
ETFS Research Update-Precious Metals Return to Attractive Value
July 2, 2013--Key points
The recent correction of the gold price to below $1,200/oz. has been driven by a sharp rise in US real interest rates on back of fears the Fed will reduce its bond buying program sooner than anticipated.
We believe the reaction of bond markets to Fed comments has been overdone, and ultimately real rates will fall from current levels, driving a rally in the gold price.
On our estimates, gold, silver and platinum (with implications for palladium) are now trading around 20%, 10% and 25% below their respective average marginal costs of production. Prices will have to move above these levels to support long-term supply growth.
Short gold futures positioning on COMEX is at an all-time high and silver shorts are now at over 10-year highs, indicating scope for powerful short covering rallies once fundamentals improve.
Physical gold buyers, notably in China, have increased purchases as the price has dropped.
While precious metals prices will be driven primarily by macro and technical factors in the near-term, we believe that at current levels they provide attractive value for long-term investors.
Source: ETF Securities
IOSCO Board focuses on behavioral economics and social media
And continues its forward-looking and proactive work on global financial regulatory reform
July 1, 2013--The Board of the International Organization of Securities Commissions (IOSCO) met in Montreal to advance its work on regulatory reform and seek new ways to enhance market integrity and efficiency, identify and reduce systemic risk, and strengthen investor protection.
The two day meeting on 18 – 19 June highlighted IOSCO’s commitment to identifying emerging risks and new market trends in a proactive and forward-looking way. The meeting was the first chaired by new Board Chairman Greg Medcraft of the Australian Securities and Investments Commission.
Source: IOSCO
ETF Securities-Precious Metals Weekly: Precious Metals Sell-Off Is Overdone
July 1, 2013--Precious metals, particularly gold and silver, were hit hard last week as investors continued to re-assess the outlook for US monetary policy. The sharp rise in US real interest rates has been the main trigger for the correction in gold and silver
prices.
In our view the reaction of bond markets to Fed comments has been overdone, and ultimately real interest rates will fall back from current levels. It appears that the Fed agrees that bond markets have over-reacted and key FOMC members appear to be trying to talk rates back down now. With gold speculative shorts at all-time highs and market sentiment almost unanimously negative, we believe there is scope for a price reversal in the coming weeks and months. Silver should benefit from a gold price rebound. Platinum and palladium have been affected more by the recent liquidity squeeze and resultant growth fears in China. Again, we believe the sell-off is overdone. We expect China liquidity conditions will ease and growth fears will dissipate over the course of the year, removing this hindrance to platinum and palladium price performance. An added source of longer-term price support for all four of the precious metals is that they are all now trading well below estimated marginal costs of production.
Source: ETF Securities
FTSE Launches the FTSE NAREIT Preferred Stock Index
July 1, 2013--FTSE Group ("FTSE"), the global index provider, today announced the launch of the FTSE NAREIT Preferred Stock Index.
Available in real time and as end-of-day, the index is designed to track the performance of US REITs preferred stocks. This new index extends FTSE’s existing comprehensive range of real estate indices which cover global, developed and emerging markets.
Source: FTSE
Average daily volume of 10.8 million contracts at Eurex Group in June
July 1, 2013--In June, the international derivatives exchanges of Eurex Group achieved an
average daily volume of 10.8 million contracts (June 2012: 11.0 million). Of
those, almost 8.1 million were Eurex Exchange contracts (June 2012: 8.5
million), and 2.7 million contracts (June 2012: 2.5 million) were traded at the U.S.-based International Securities Exchange (ISE).
In total, 162.6 million contracts were traded at Eurex Exchange and 54.3 million at ISE. Eurex Exchange recorded 68.3 million equity index derivatives contracts (June 2012: 86.6 million). The single largest contract was the future on the EURO STOXX 50 Index with 33.6 million contracts. The option on this blue chip index totaled 19.2 million contracts. Futures on the DAX index recorded 3.2 million contracts while the DAX options reached another 4.0 million contracts. The Eurex KOSPI Product reached 2.0 million contracts.
Source: Eurex
NASDAQ OMX Monthly Index Performance Report -June 2013
July 1, 2013--NASDAQ OMX has consolidated performance data for the top 50 most-watched NASDAQ OMX indexes.
view the June Monthly Index Performance Report
Source: NASDAQ OMX
BlackRock-New standards in pension plan investment policy and implementation
July 1, 2013--Volatile markets, increased longevity and low rates present significant obstacles on the road to full funding that are hard to overcome with traditional asset allocation.
In this issue we examine whether a dynamic and adaptive approach, which the authors term journey management, might offer a more effective path towards full funding. The associated analysis also yields some valuable insights for those pension funds that have already started to implement a journey plan.
Source: BlackRock
SINA is First Chinese Web Property to Launch Real-Time NASDAQ Last Sale Market Data Service for All U.S.-Listed Securities
SINA's Media Network Enhanced With NASDAQ's Real-Time Market Data
June 30, 2013--The NASDAQ OMX Group, Inc. (Nasdaq:NDAQ) today announced that NASDAQ Last Sale real-time data is now available to millions of individual investors on the digital media network of SINA Corporation (Nasdaq:SINA), an online media company serving China and the global Chinese community.
SINA will become the first ever Chinese website to launch free real time trade data for all U.S. listed securities. NASDAQ Last Sale provides a real-time and comprehensive view into trading activity in all U.S.-listed equity securities.
Source: Global Newswire
IMF Working paper-The Finance and Growth Nexus Re-Examined: Do All Countries Benefit Equally?
Summary: A large theoretical and empirical literature has focused on the impact of financial deepening on economic growth throughout the world. This paper contributes to the literature by investigating whether this impact differs across regions, income levels, and types of economy.
Using a rich dataset for 150 countries for the period 1975-2005, dynamic panel estimation results suggest that the beneficial effect of financial deepening on economic growth in fact displays measurable heterogeneity; it is generally smaller in oil exporting countries; in certain regions, such as the Middle East and North Africa (MENA); and in lower-income countries. Further analysis suggests that these differences might be driven by regulatory/supervisory characteristics and related to differences in the ability to provide widespread access to financial services.
Source: IMF
NYSE Euronext is the Leader in Global Capital Raising during the First Half of 2013
The global leader in IPOs with 72 transactions raising $28.5 billion in total global proceeds.
The global leader in follow-on financings with 262 transactions raising $106 billion in total global proceeds.
14 new technology listings accounted for a record 64% of all new technology offerings and 58% capital raised in the sector.
NYSE leads the market in completed or announced transfers from other U.S. exchanges with two top NASDAQ-100 Index companies Perrigo and Oracle.
In Europe, Euronext saw 23 new listings with €926 million ($1.2 billion) raised in proceeds from seven IPOs, and launched EnterNext(R), the Marketplace for SMEs.
June 28, 2013--During the first half of 2013, NYSE Euronext markets in the U.S. and Europe raised $28.5 billion in total global proceeds in 72 initial public offerings (IPOs) and exceeded the combined proceeds raised on the next four world markets.
In the U.S., capital raised from IPOs listed on the New York Stock Exchange (NYSE) was four-times more than any other U.S. marketplace, and the NYSE achieved a record 64% of all new technology offerings from 14 listings that accounted for 58% of capital raised in the sector. Also in the first half of 2013, NYSE Euronext raised $106 billion in follow-on transactions, more than the next six world markets combined. There were a total of $168 billion in announced or completed transfers to our market, including Oracle and Perrigo, two top 100 NASDAQ companies. In Europe, NYSE Euronext added 23 new listings with approximately €926 million ($1.2 billion) in proceeds from seven IPOs and launched EnterNext(R), its innovative marketplace for SMEs.
Source: NYSE Euronext
