Nyheter
Geopolitical Risks in Focus
ETF Securities Commodity ETP Weekly Geopolitical Risks in Focus
Dovish outlook causes gold bears to trim exposure.
Profit taking prompts ETFS Physical Silver (PHAG) outflows after 7.9% weekly rally.
Long WTI ETPs witness first weekly outflows in six months.
Conflict in Yemen, Iranian nuclear talks and Greek debt negotiations will mean geopolitical risks are likely to dominate headlines and keep investor risk appetite subdued. As a result, asset price volatility will remain elevated, as illustrated last week by the impact of Saudi Arabia’s military actions, which sent the price of crude soaring. Towards the end of the week, investor attention will turn to US payroll data due, hoping to gain a better indication of the pace of interest rate hikes by the Federal Reserve.
Dovish outlook causes gold bears to trim exposure. Fed chair Yellen’s speech last week highlighted the gradual nature of the tightening cycle when it begins later in 2015. This has kept the US Dollar relatively subdued and precious metals prices supported as rate hike expectations continued to be pushed back – a process that began after the latest FOMC meeting. The gold price ended the week up 3.2% at US$1,199/oz, just below the important US$1,200/oz psychological level. The rally prompted US$109mn to exit ETFS Daily Short Gold (SBUL) as positive sentiment caused investors to reduce short gold exposure. Gold is likely to be supported by rising volatility in coming months, as investors dissect economic indicators to discern the start of the tightening cycle – currently expected at the September FOMC meeting.
Profit taking prompts ETFS Physical Silver (PHAG) outflows after 7.9% weekly rally. Silver followed gold higher last week as geopolitical concerns coupled with a relatively dovish tone from the US Federal Reserve about the pace and timing of rate hikes, boosted the demand for precious metals. Precious metals typically become an attractive alternative during periods of low interest rates and any perceived delays to rate normalisation in the US will act as a bullish factor for the complex. PHAG saw a net weekly redemption of US$7mn following the price rally, as investors locked in profits. This year silver has performed well rising 7.3% and has attracted of inflows US$70.7mn into ETPs providing long exposure.
Long WTI ETPs witness first weekly outflows in six months. US crude rallied 17% last week encouraging profit taking by investors with long exposure. The rally, initially instigated by Dollar depreciation. was assisted by Saudi led airstrikes launched in Yemen against the Houthi rebels, after the internationally recognised Yemeni president made pleas for assistance. Although Yemen produces relatively little oil, the bombings raised fears that the conflict would escalate between oil rich Saudi Arabia and Iran, which is believed to have provided arms, training and financial support to rebel forces. Long WTI ETPs, until now, had experienced the longest streak of net weekly inflows (25) since inception as investors positioned themselves for a recovery in oil prices. Last week, a total of US$50.1mn exited long oil ETPs, including US$26mn from ETFS Daily Leveraged WTI Crude Oil (LOIL), the largest net weekly outflow since 2011.
Key events to watch this week. Market focus will be on US payroll data due on Friday, as investors continue to try and preempt the pace of rate hikes in the US. Geopolitical risks will continue to remain in the fore as the deadline for an Iranian nuclear deal approaches and the impasse over a Greek debt deal lingers. Precious metals investors will be monitoring Eurozone CPI, which will likely reveal the ECB still has much to do to help boost inflationary pressures via strengthening demand.
Video Presentation
Joshpreet Tiwana, Research Analyst at ETF Securities provides an analysis of last week’s performance, flow and trading activity in commodity exchange traded products and a look at the week ahead.
Important Information
This communication has been provided by ETF Securities (UK) Limited (”ETFS UK”) which is authorised and regulated by the United Kingdom Financial Conduct Authority.
The UK is shaking up crypto. This month, the Financial Conduct Authority (FCA) proposed lifting its ban on crypto exchange-traded notes for retail investors, a positive step in a global race to regulate digital assets and provide consumer protection.
Key metrics show Bitcoin’s rally isn’t over
Bitcoin is above $100K, and key indicators suggest a growing momentum and a potential for further upside. The Bitcoin Fear & Greed Index sits at 62, reflecting a sentiment that remains near neutral. This lack of extreme greed suggests that the rally may still have room to run in the near term.
Apple wants to enter Circle’s orbit. Why are stablecoins the tech world’s new darling?
Stablecoin issuer Circle made a blockbuster debut on the New York Stock Exchange earlier this month. Now, tech giants like Apple, Meta, and Google are reportedly exploring stablecoin integrations, marking another major step toward merging digital assets with mainstream technology.
Research Newsletter
Each week the 21Shares Research team will publish our data-driven insights into the crypto asset world through this newsletter. Please direct any comments, questions, and words of feedback to research@21shares.com
Disclaimer
The information provided does not constitute a prospectus or other offering material and does not contain or constitute an offer to sell or a solicitation of any offer to buy securities in any jurisdiction. Some of the information published herein may contain forward-looking statements. Readers are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties and that actual results may differ materially from those in the forward-looking statements as a result of various factors. The information contained herein may not be considered as economic, legal, tax or other advice and users are cautioned to base investment decisions or other decisions solely on the content hereof.
SGS5 ETP spårar priset på silverterminer
GIGU ETF investerar aktivt i USD-denominerade företagsobligationer
UK looking to lift the retail ban on crypto ETPs
AMEM ETF, de ledande aktierna från tillväxtmarknaderna i en enda transaktion
21Shares noterarar fem nya krypto-ETPer Nasdaq Stockholm
Montrose befäster sin position som den populäraste ETFen
BNP Paribas Asset Management lanserar Europe Defense ETF
Global X noterar Europafokuserad försvarsfond
Kommer Nordea att lansera nya börshandlade fonder?
Nu introduceras fem nya europeiska börser på Nordnet – courtagefri handel under maj
-
Nyheter2 veckor sedanMontrose befäster sin position som den populäraste ETFen
-
Nyheter3 veckor sedanBNP Paribas Asset Management lanserar Europe Defense ETF
-
Nyheter4 veckor sedanGlobal X noterar Europafokuserad försvarsfond
-
Nyheter3 veckor sedanKommer Nordea att lansera nya börshandlade fonder?
-
Nyheter4 veckor sedanNu introduceras fem nya europeiska börser på Nordnet – courtagefri handel under maj
-
Nyheter3 veckor sedanBlackRock lanserar europeisk försvars-ETF för europeiska investerare
-
Nyheter3 veckor sedanYieldMax™ tillkännager första utdelningen för YYYY
-
Nyheter4 veckor sedanRivstart för Montrose ETF-satsning!
