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).
Jun 29, 2018
Global equity markets declined last week on global growth expectations. The S&P 500 dropped 1.3%, led lower by technology stocks. The EURO STOXX 50 declined by 1.3% and the Nikkei 225 fell by 0.9%. China's Shanghai Composite continued its recent decline, having now dropped over 22% from its January peak. Domestically the S&P/ASX 200 dropped 0.5% as gains in materials and energy stocks mostly offset declines in the financial and health care sectors. Australian resources ETFs (QRE and OZR) were among the top performers for the week, while VanEck Vectors ChinaAMC A-Share ETF (CETF) and ETFS Morningstar Global Technology ETF (TECH) were amongst the biggest decliners. Bond yields declined and the U.S. dollar strengthened last week. The Australian dollar ended the week lower at US74.05c, having dropped as far as US73.24c mid-week. The Chinese renminbi declined by 1.8% against the U.S. dollar. Oil prices rallied strongly on expectation of reduced supply. WTI crude gained 8.1% to end the week at US$74.15/bbl. Precious metals declined across the board, with gold down 1.4% and silver down 2.1%. The Australian ETF market saw inflows of $100m into and outflows of $82m from domestically domiciled funds last week. The largest inflows were into BetaShares Australian Sustainability Leaders ETF (FAIR). The largest outflows were from SPDS S&P/ASX 200 Fund (STW) and SPDR MSCI Australia Select High Dividend Yield Fund (SYI).