May 19, 2017
Global equities retreated last week as US political turmoil dominated headlines. The S&P/ASX 200 ended the week down 1.9%, the S&P 500 dropped 0.4% and the EURO STOXX 50 declined 1.4%. The domestic financial sector was hit hardest, with financial sectors ETFs (QFN, OZF and MVB) all amongst the poorest performers for the week. In Asia, the Nikkei 225 declined 1.5% on a strengthening yen, while the Shanghai Composite posted its first weekly gain in six weeks. The Australian dollar gained 1% last week on general US dollar weakness. The euro gained 2.5% and the yen gained 1.9%. WTI crude gained 5.2% on anticipation of OPEC production cuts. Gold and silver gained 1.7% and 2.9% respectively as investors looked to protect against increased equity volatility. Iron ore advanced 2.1%. Crude oil, silver and gold ETFs (OOO, ETPMAG and QAU) were amongst the top performers for the week. The Australian ETF market saw inflows of A$153m and outflows of A$4m from domestically domiciled ETFs. The largest inflows were into SPDR S&P/ASX 200 Fund (STW).
May 12, 2017
The S&P/ASX 200 ended the week unchanged with a recovery in the resources sector offsetting declines in the major banks on news of the federal government's new bank tax. Offshore, the S&P 500 declined 0.4% and the EURO STOXX 50 retreated 0.6%, while the Nikkei 225 and Hang Seng both gained in excess of 2%. Top performing ETFs domestically were gold miners and resource funds (MNRS, GDX, QRE, MVR and OZR), while financials-focused funds were the poorest performers (MVB, QFN and OZF). The Australian dollar declined 0.5% last week, with the US dollar gaining ground against most of the majors. WTI crude gained 3.5% on falling US inventories. Gold and silver gained 0.3% and 0.2% respectively. The Australian ETF market saw inflows of A$89m and outflows of A$82m from domestically domiciled ETFs. The largest inflows were into ETFS Physical Gold (GOLD) and domestic equity strategy ETFs (HVST, MVW and YMAX). Outflows were from broad-based Australian equity funds (STW and ILC) and cash (AAA).