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The week's highlights Global equity markets rallied last week in the wake of U.S. midterm elections. The S&P 500 gained 2.1% on the expectation that major policy changes would be slowed by the divided government. The EURO STOXX 50 added 0.5%, while the Nikkei 225 was flat. Domestically the S&P/ASX 200 added 1.2%, led higher by the big four banks, which posted an average gain of 4.3% for the week. Bank and property ETFs (MVB and MVA) were amongst the week's best performers. The Fed kept U.S. rates unchanged, while firming expectations of a December hike. Short-term yields rose and longer-dated yields remained near recent highs. The Australian dollar ended the week stronger at US72.26c. Commodities declined with gold down 1.9% and silver down 3.8%. WTI crude fell 4.7% to its lowest level since February and BetaShares Crude Oil Index ETF (OOO) was the poorest performing ETF for the week. The Australian ETF market saw inflows of $116m into and outflows of $23m from domestically domiciled funds last week. The largest inflows were into domestic equity ETFs (IOZ and MVW), while the largest outflows were from domestic small caps (ISO) and U.S. dollar (ZUSD). ...
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This week's highlights Global equity markets bounced last week as volatility subsided in the run-up to this week's U.S. midterm elections. The S&P 500 ended the week up 2.4%, while the EURO STOXX 50 added 2.5% and the Nikkei 225 jumped 5.0%. Leveraged funds aside, the top performing ETFs for the week were global robotics funds (RBTZ and ROBO), which returned in excess of 6%. Asia Pac funds also performed strongly. Bearish equity funds, unsurprisingly, dominated the worst performers list. The Australian dollar ended the week stronger at US71.93c. U.S. 10-year Treasury yields rose 14bps and expectations of a December hike by the Fed firmed on strong U.S. employment data. Gold traded in a tight range, ending the week slightly lower at US$1,233/ounce, while platinum rose 4.3%. WTI crude fell 6.6% to US$63.14/bbl as U.S. sanctions on Iranian exports commenced. The Australian ETF market saw inflows of $447m into and outflows of $264m from domestically domiciled funds last week. The largest inflows were into domestic equity ETFs (VAS, VHY and STW), while global broad-based equity funds (VGS and VGAD) also attracted strong flows. The bulk of outflows were also from domestic equities (IOZ). ...