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Further volatility in the Turkish lira hit emerging markets last week. The MSCI Emerging Markets Index fell by 3.7%. China was hit particularly hard, with the Shanghai Composite down 4.5% for the week. European financials were sold on Turkey concerns, dragging the EURO STOXX 50 down 1.6%. The S&P 500 gained 0.6% as defensive sectors outperformed. The ETFS S&P 500 High Yield Low Volatility ETF (ZYUS) was the top performing ETF for the week. Domestically, the S&P/ASX 200 added 1.0% as gains in financials offset losses in the resources sector. The Turkish lira regained some ground last week, rising by 6.8% following its 21% decline in the previous week. The U.S. dollar fell against most majors. The Australian dollar gained 0.15% to end the week at US71.13c. Commodities declined last week, with the broad Bloomberg Commodities Index down 1.1%. WTI Crude dropped by 2.5%. Precious metals also fell, with gold down 2.2% to US$1,1,84/ounce and silver down 3.3%. The Australian ETF market saw inflows of $93m into and outflows of $36m from domestically domiciled funds last week. The largest inflows were into iShares S&P/ASX 200 ETF (IOZ), VanEck Vectors Australian Floating Rate ETF (FLOT) and a range of international equity funds (QUAL, IHVV and IAA). The largest outflows were from BetaShares FTSE RAFI Australia 200 ETF (QOZ) and BetaShares U.S. Dollar ETF (USD). ...
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Equity market volatility picked up last week as the Turkish lira plunged and global trade concerns continued. The S&P 500 fell by 0.3%, despite strong earnings from U.S. companies and positive economic data. Small-caps outperformed, with iShares Core S&P SmallCap ETF (IRJ) returning 2.3% for the week. The S&P/ASX 200 added 0.7% last week, with financials and real estate sectors being the main contributors. The EURO STOXX 50 declined by 1.6% on concerns around bank exposure to Turkish credit. Chinese equities bounced on growth expectations, with the Shanghai Composite adding 2.0%. China-focused ETFs (IZZ and CETF) were the top performing funds for the week. The Turkish lira declined by 21% last week, pushing the U.S. dollar higher against most currencies. The DXY U.S. Dollar Index added 1.3% as the Australian dollar fell by 1.4% to U.S.73c and the euro fell 1.3%. Bonds rallied, with U.S. 10-year Treasury yields falling by 8 basis points. Commodities mostly declined last week on U.S. dollar strength. Despite the rising volatility in equity markets gold continued to fall, dropping 0.4% for the week to US$1,211/bbl. ETFS Physical Gold (GOLD), which is priced in AUD, returned 0.9% for the week. The Australian ETF market saw inflows of $207m into and outflows of $129m from domestically domiciled funds last week. The largest inflows were into BetaShares Australia 200 ETF (A200) and a range of cash and fixed income funds (FLOT, BILL, QPON and PLUS). The largest outflows were from domestic equity funds; SPDR S&P/ASX 200 Fund (STW) and BetaShares FTSE RAFI Australia 200 ETF (QOZ). ...
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