Aug 14, 2018
Equity market volatility picked up last week as the Turkish lira plunged and global trade concerns continued. The S&P 500 fell by 0.3%, despite strong earnings from U.S. companies and positive economic data. Small-caps outperformed, with iShares Core S&P SmallCap ETF (IRJ) returning 2.3% for the week. The S&P/ASX 200 added 0.7% last week, with financials and real estate sectors being the main contributors. The EURO STOXX 50 declined by 1.6% on concerns around bank exposure to Turkish credit. Chinese equities bounced on growth expectations, with the Shanghai Composite adding 2.0%. China-focused ETFs (IZZ and CETF) were the top performing funds for the week. The Turkish lira declined by 21% last week, pushing the U.S. dollar higher against most currencies. The DXY U.S. Dollar Index added 1.3% as the Australian dollar fell by 1.4% to U.S.73c and the euro fell 1.3%. Bonds rallied, with U.S. 10-year Treasury yields falling by 8 basis points. Commodities mostly declined last week on U.S. dollar strength. Despite the rising volatility in equity markets gold continued to fall, dropping 0.4% for the week to US$1,211/bbl. ETFS Physical Gold (GOLD), which is priced in AUD, returned 0.9% for the week. The Australian ETF market saw inflows of $207m into and outflows of $129m from domestically domiciled funds last week. The largest inflows were into BetaShares Australia 200 ETF (A200) and a range of cash and fixed income funds (FLOT, BILL, QPON and PLUS). The largest outflows were from domestic equity funds; SPDR S&P/ASX 200 Fund (STW) and BetaShares FTSE RAFI Australia 200 ETF (QOZ).
Aug 07, 2018
The S&P/ASX 200 dropped 1.0% last week, as declines in banks and resources led the market lower. Trade concerns dragged on markets globally, with the EURO STOXX 50 declining by 1.3% and the Nikkei 225 dropping 0.8%. China's Shanghai Composite fell 4.6% and China and Asia focused ETFs (CETF, IZZ, PAXX and UBP) were amongst the poorest performers for the week. The S&P 500 added 0.8% with the U.S. growth outlook strengthening. U.S. defensive sectors outperformed last week with real estate, telecoms and health care being the top performing sectors. ETFS S&P 500 High Yield Low Volatility ETF (ZYUS), which has a defensive sector bias, returned over 2%. The Fed kept rates on hold, but reaffirmed its confidence in the U.S. economy. U.S. 10-year Treasury yields rose above 3% for the first time since May. The Bank of England raised rates for the second time since the Brexit referendum. Gold dropped 0.8% to US$1,215/ounce and other precious metals also retreated. WTI crude fell to US$68.49/bbl. The Australian ETF market saw inflows of $118m into and outflows of $145m from domestically domiciled funds last week. The largest inflows were into BetaShares Australian Bank Senior Floating Rate Bond ETF (QPON) with notable inflows into a range of domestic and international equity funds including QUAL, MVW and QFN. SPDR S&P/ASX 200 Fund (STW) saw $140m of outflows.
Jul 31, 2018
The S&P/ASX 200 added 0.2% last week, led higher by resources and energy sector stocks. Domestic resource sector ETFs, QRE and OZR, were amongst the top performers for the week, both returning 2.8%. The S&P 500 added 0.6% despite the IT sector declining as reporting season continued. The highlight was Facebook, which declined 16.7% for the week, leading the Nasdaq 100 Index 0.7% lower. U.S. financials fared much better - BetaShares Global Banks ETF (BNKS) returned 3.2% for the week. The EURO STOXX 50 Index rose 1.9% as Europe-U.S. trade talks progressed. In Asia the Shanghai Composite added 1.6%. The Australia dollar firmed to US74c, while the euro declined as the ECB confirmed its plans to end its asset purchasing programme this year. U.S. Treasury yields rose 6 basis points on an improved economic outlook as GDP grew by 4.1% in Q4. Commodities were mixed last week with WTI crude falling 2.5% to US$68.69/bbl. Gold dropped 0.4% to US$1,224/ounce. ETFS Physical Palladium (ETPMPD) was the top performing fund for the week, returning 4.3%, while gold mining ETFs (MNRS and GDX) were amongst the poorest performers. Bloomberg Industrial Metals Subindex rose 1.8% for the week. The Australian ETF market saw inflows of $102m into and outflows of $81m from domestically domiciled funds last week. The largest inflows were into iShares Core Cash ETF (BILL), while there were significant outflows from SPDR S&P/ASX 200 Fund (STW).
Jul 20, 2018
Global equity markets advanced slightly last week as upbeat commentary from the Federal Reserve and strong earnings reports from U.S. banks mostly offset tariff concerns. The S&P/ASX 200 added 0.3%, led higher by financials. Offshore the S&P 500 ended the week slightly higher, the EURO STOXX 50 gained 0.2% while the Nikkei 225 added 0.4%. Domestic and global bank ETFs (BNKS and MVB) were amongst the top performers along with Japanese equity funds (UBJ and IJP). The U.S. dollar weakened against the majors despite rising Treasury yields. The euro appreciated by 0.3%, while the yen gained 0.9%. The Australian dollar fell slightly to US74.15c. Commodities retreated, led lower by precious metals. Gold fell 1.2%, while silver was down 1.9% and palladium dropped 4.7%. WTI Crude declined by 0.8%. The five poorest performing ETFs for the week were all commodity-linked. Soft commodities were the exception. BetaShares Agriculture ETF (QAG) was the top performing ETF for the week. The Australian ETF market saw inflows of $158m into and outflows of $213m from domestically domiciled funds last week. The largest inflows were into SPDR S&P/ASX 200 Fund (STW), while there were significant outflows from both BetaShares S&P/ASX 200 Resources Sector ETF (QRE) and VanEck Vectors Australian Resources ETF (MVR) as well as BetaShares Australian High Interest Cash ETF (AAA).
Jul 13, 2018
Global equity markets rose last week despite increasing global trade concerns. The S&P 500 added 1.5% as cyclical stocks returned to favour. BetaShares Nasdaq 100 ETF (NDQ) returned 2.5% for the week. Asia and emerging markets advanced; Japan's Nikkei 225 gained 3.7% and China's Shanghai Composite rose 3.1%, its first weekly gain in eight weeks. ITW, CETF and EMKT were all amongst the top performing ETFs for the week. Domestically the S&P/ASX 200 dropped 0.1% as utilities, energy and financial stocks traded lower. Commodity-related funds (QAG, MNRS and GDX) were amongst the poorest performers for the week. The U.S. dollar strengthened, gaining 1.7% against the yen and 0.5% against the euro. Pound sterling declined on heightened Brexit concerns. The Australian dollar ended the week marginally lower at US74.24c. The Chinese yuan declined for the fifth straight week. Commodities more impacted by the global trade uncertainty than equities with WTI Crude declining 3.8% and the broad Bloomberg Commodity Index dropping 2.8%. Gold retreated by 0.9% and other precious metals also declined. The Australian ETF market saw inflows of $95m into and outflows of $11m from domestically domiciled funds last week. The largest inflows were into Platinum's active equity ETFs (PIXX and PAXX). The bulk of outflows were from a range of domestic equity funds (HVST, QFN and GEAR).
Jul 06, 2018
Global equity markets were mixed last week with global trade-war concerns being offset by up-beat economic data. The S&P 500 added 1.5% as technology and defensive sector stocks outperformed. U.S. employment grew more than expected in June. The EURO STOXX 50 added 1.6%, while stocks weakened across Asia with the Nikkei 225 down 2.3% and China's Shanghai Composite down 3.5%. Domestically the S&P/ASX 200 gained 1.5%. Telecoms and utilities were the top performing sectors, while a rebound in financials made the biggest contribution. Gold mining (GDX), U.S. small cap (IJR and IRU) and technology (TECH) ETFs were amongst the top performers for the week while Asian equities (CETF, IZZ and ISG) were amongst the biggest decliners. The U.S. dollar declined against most major currencies as Treasury yields fell. The Australian dollar ended the week higher at US74.30c and the euro advanced to US$1.17. The Chinese yuan declined for the fourth straight week.. Gold advanced 0.2% last week and gold miners rallied. WTI Crude declined 0.5%. . The broad Bloomberg Commodity Index dropped 1.4%. The Australian ETF market saw inflows of $83m into and outflows of $42m from domestically domiciled funds last week. The largest inflows were into equity ETFs including ETFS ROBO Global Robotics and Automation ETF (ROBO). The bulk of outflows were from BetaShares Australian High Interest Cash ETF (AAA).