Monetary policy was in the spotlight last week, with the US Fed announcing plans to begin winding down it's balance sheet. The S&P 500 dropped on the news, but finished the week slightly up. Elsewhere, the EURO STOXX 50 added 0.7% on strong PMI figures in the lead up to the weekend's German election. The Nikkei 225 gained 1.9%. Domestically, the S&P/ASX 200 declined by 0.2%. Global sector plays (BNKS, FUEL and IXP) and US small caps (IJR and IRU) were the top performing ETFs for the week.
The US dollar strengthened against most major currencies. The Australian dollar pulled back 0.5% to below US 80c.
Precious metals retreated further, with gold down 1.7% and silver down 3.4%. Iron ore dropped by 11.9% on Chinese demand concerns.
The Australian ETF market saw inflows of A$99m and outflows of A$13m from domestically domiciled ETFs last week. The largest inflows were into ETFS Physical Gold (GOLD) and iShares S&P/ASX 200 ETF (IOZ) as well as cash and floating rate income funds (AAA, QPON and FLOT).