This week's highlights
Global equities fell last week on a lower growth outlook following below expectation economic data across the regions. The S&P/ASX 200 dropped 1.4% with resources being the only positive sector for the week. Resource sector ETFs (QRE and OZR) were the top performing long-only equity funds. Offshore, the S&P 500 fell 1.3%, with financials being hit hardest. The Nikkei 225 fell 1.4%, while the EURO STOXX 50 gained 1.1%.
U.S. 10-year Treasury yields rose 4 basis points and the U.S. dollar gained against most majors. The Australian dollar ended the week lower at US71.72c. Pound sterling continued to decline on further Brexit uncertainty.
Precious metals pulled-back, with gold down 0.8% to US$1,239/ounce. Palladium continued its run up and is now close to 50% above its August low. ETFS Physical Palladium (ETPMPD) returned 2.7% for the week. Crude oil fell 2.7% for the week, while the broad Bloomberg Commodity Index dropped 2.7%.
The Australian ETF market saw inflows of $164m into and outflows of $106m from domestically domiciled funds last week. The largest flows were into BetaShares Australia 200 ETF (A200), iShares Treasury ETF (IGB) and iShares S&P/ASX 200 ETF (IOZ).