Nitesh Shah, Associate Director – Research at ETF Securities, shares his outlook following Greece’s unanimous ‘No’ vote:…
“The failure to make progress in Greek debt negotiations elevates the risk of a default on the €3.5bn that is owed to the ECB on 20 July. A default on that bond would almost certainly lead to the emergency liquidity assistance (ELA) being switched off and throw Greek banks into an untenable position of ‘Grimbo’. Gold has surprisingly not reacted to the events but that could change as worst-case scenarios crystalize. Oil inflows reach the highest for 14 weeks, with ETF securities long oil ETPs receiving US$49.3mn of inflows last week. Agricultural commodities have clearly been outperformers in the past week, and as the strengthening El Niño weather pattern changes growing conditions, we believe agricultural commodities will continue to offer investors strong opportunities.”
– Inflows into long oil ETPs highest in 14 weeks, as investors return to bargain hunting.
– Profit-taking led to US$36.0mn outflows from long wheat ETPs.
– Long nickel ETPs see largest inflows since November 2014 on the back of bargain hunting.