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Fed Dovishness Drives Cyclicals Lower

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9 år sedan

den

21 september, 2015

Redaktionen

ETFS Multi-Asset Weekly – Fed Dovishness Drives Cyclicals Lower

Highlights

•   Commodities: Gold gains on the back of dollar weakness.
•   Equities: Fed’s dovishness takes markets by surprise.
•   Currencies: Dollar extends losses as Fed points to global growth concerns.

Asian markets have opened weaker today following the declines in US and European equity market trading last week after the Federal Reserve (US central bank) decided to leave rates on hold. The Fed’s emphasis on subdued inflation and the spillover effects of a slowdown in the Chinese economy drove cyclical markets lower. Investors will be assessing the implications of the Greece election, where Alexis Tsipras’ Syriza party won a mandate to govern. Their victory is anticipated to clear the way for reforms tied to the €86bn third bailout. Gold held near the highest level in more than two weeks as global cyclical markets extended their decline.

Commodities

Gold gains on the back of dollar weakness. The Fed’s decision to hold off on raising rates helped renew gold’s safe haven status as it headed for its first weekly advance in a month signalling concerns over the fragility of global economic growth. Gold rose 1.9% on Friday. The surprising decline in US crude oil stocks reported by the American Petroleum Institute coupled by the weaker greenback lent support to crude oil prices. US oil inventories surprisingly contracted against expectations of a rise, helping WTI oil gain 1.5% last week. Forecasts for a delayed start to the fall heating demand season pushed natural gas futures towards a weekly decline. Copper advanced to the highest level in eight weeks after an earthquake in Chile, the world’s biggest copper producer, forced some mines to halt work as a precaution. Strategie Grains has forecasted the weakest EU Corn crop in eight years of just 57.4mn tons.

Equities

Fed’s dovishness takes markets by surprise. Although futures markets had correctly anticipated that the Fed would hold off raising rates, the extent of the emphasis that the Federal Open Market Committee had placed on global risks, took the market by surprise. The epicentre of concern is the potential spill-over effects from China, which could see a disorderly unravelling unless it regains a firm grip on its reform plan that was designed to ensure growth stability. Chinese equities declined a further 4.1% last week. Although the Fed improved its labour market projections, it also notched down its inflation and growth expectations for 2016. Federal fund futures market cut the prospects of a December rate rise to below 50%.

Currencies

Dollar extends losses as Fed points to global growth concerns. The greenback fell against most of its major peers after FOMC kept rates unchanged, citing low inflation and the impact of global risks on economic activity. EUR remains supported in the wake of broad US dollar weakness and an election victory for Syriza in Greece that is likely to see austerity measures implemented. A rise in UK wages at 2.9%, the fastest rate in six years coupled with hawkish comments by BOE Governor Carney lent support to the GBP. The Canadian dollar continued to suffer the brunt of weaker oil prices despite the inline CPI print. Yen’s safe haven demand.

For more information contact:

ETF Securities Research team
ETF Securities (UK) Limited
T +44 (0) 207 448 4336
E info@etfsecurities.com

Important Information

General

This communication has been issued and approved for the purpose of section 21 of the Financial Services and Markets Act 2000 by ETF Securities (UK) Limited (”ETFS UK”) which is authorised and regulated by the United Kingdom Financial Conduct Authority (”FCA”).

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ETF från BNP Paribas med tillgång till statsobligationer på tillväxtmarknader säkrade mot den australiska dollarn

Publicerad

10 timmar sedan

den

28 januari, 2025

Redaktionen

Sedan i tisdags har en ny börshandlad fond utgiven av BNP Paribas Asset Management kunnat handlas via Xetra. Det är en ETF från BNP Paribas med tillgång till statsobligationer på tillväxtmarknader säkrade mot den australiska dollarn.

BNP Paribas Easy JPM ESG EMBI Global Diversified Composite UCITS ETF erbjuder investerare tillgång till en brett diversifierad portfölj av statsobligationer och kvasi-statliga obligationer från tillväxtmarknader denominerade i US-dollar med fast eller rörlig ränta. ESG-kriterier beaktas vid valet av enskilda värdepapper enligt best-effort-metoden. Detta innebär att emittenter som har förbättrat sin ESG-praxis och prestanda över tid eller har goda chanser att göra det kommer att bli överviktade.

Andelsklassen är valutasäkrad mot den australiensiska dollarn. Investerare kan handla ETF på Xetra i valutan australiensiska dollar.

Namn	Kortnamn	ISIN	Förvaltnings- avgift	Utdelnings- policy	Referens- index
BNP Paribas Easy JPM ESG EMBI Global Diversified Composite UCITS ETF H AUD Capitalisation	BJL5	LU2929405640	0.25 per cent	accumulating	JPM ESG EMBI Global Diversified Composite Index

Produktutbudet i Deutsche Börses XTF-segment omfattar för närvarande totalt 2 344 ETFer. Med detta urval och en genomsnittlig månatlig handelsvolym på cirka 18 miljarder euro är Xetra den ledande handelsplatsen för ETFer i Europa.

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Harbor Health Care UCITS ETF: 2025 hälsovårdsmöjligheter

Publicerad

11 timmar sedan

den

28 januari, 2025

Redaktionen

Westfield Capital Managements managing partner Matthew Renna pratade med Proactive om Harbor Health Care UCITS ETF (WELL) och dess unika inställning till sjukvårdsinvesteringar. Renna lyfte fram fondens aktiva, koncentrerade strategi, som betonade möjligheter över hela hälso- och sjukvårdsspektrumet, från högkvalitativa tillväxtföretag till innovativa bioteknik- och medicinteknikföretag.

Renna delade sin optimism för hälso- och sjukvårdssektorn och noterade att sjukvårdens S&P-vikt är på en lägsta nivå på 10 år, vilket skapar attraktiva upplägg för långsiktig tillväxt. Han sa, ”Hälsovården har en riktigt stor chans att överträffa marknaden. Det är ett bra tillfälle att ta en ny titt på möjligheterna.”

Genom att diskutera viktiga fokusområden redogjorde Renna för fondens investeringar i bioteknikföretag som Ascendis Pharma, som han noterade är nära lönsamhet och positionerat för betydande intäktsökning. På medicintekniksidan betonar fonden innovativa teknologier som de från Dexcom, som leder till kontinuerlig glukosövervakning för diabetes.

Konversationen tog också upp hälso- och sjukvårdens potentiella återväxt när teknik- och AI-sektorerna stabiliseras, vilket är ett övertygande argument för förnyat investerarintresse 2025 och därefter.

Handla W311 ETF

Harbor Health Care UCITS ETF (W311 ETF) är en europeisk börshandlad fond som handlas på bland annat London Stock Exchange och tyska Xetra.

Det betyder att det går att handla andelar i denna ETF genom de flesta svenska banker och Internetmäklare, till exempel DEGIRO, Nordnet, SAVR och Avanza.

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Crypto responds to Trump’s Executive Order and Japan’s rate hike

Publicerad

12 timmar sedan

den

28 januari, 2025

Redaktionen

The Bank of Japan’s decision to double interest rates from 0.25% to 0.5% impacted the crypto market, though less significantly than the reaction in late July 2024. This rate hike, bringing interest levels to a 17-year high, appeared to be largely anticipated by the market, tempering the response of risk assets.

As mentioned in previous updates, corrections in Bitcoin are expected even during bull runs. However, it is encouraging to see signs of market maturity, leverage mitigation and reduced liquidity-driven reactions in such scenarios.

Market Highlights

Trump’s crypto executive order

Trump signed an EO titled ”Strengthening American leadership in digital financial technology”, following SEC’s new crypto task force.

This suggests a shift to a pro-crypto administration and a pivot in digital asset policy. It also showcases new US efforts to foster innovation and clarify its regulatory landscape.

US BTC ETFs more valuable than ever

After a seven-day inflow streak last week, BTC ETFs reached their highest value yet with over $123 billion in total net asset value.

This could be seen as a response to Trump’s executive order, highlighting the importance of the regulatory clarity that comes with it.

Assets resistance despite BoJ’s new rate hike

Assets avoided a meltdown after the Bank of Japan increased interest rates to the highest level since 2008, going from 0.25% to 0.5%.

This contrasts to last August’s meltdown and could indicate a more favorable environment. With less leverage in the system, the impact on liquid markets like crypto is likely to be lower during periods of stress.

Market Metrics

Trump’s executive order and other regulatory developments were overpowered by the BoJ’s rate hike, causing the NCITM (-1.7%) to close the week with a slight decline. However, it’s performance still leads other major asset classes, followed by EWZ (+8.1%) and Gold (+5.3%). This reinforces the notion that crypto has volatility even in the midst of bull runs, an important feature as this asset class matures.