Gold ETPs saw the largest inflows since August 2010 as further sovereign downgrades were announced and Federal Reserve Chairman Bernanke indicated the possibility of QE3. With inflationary pressure continuing to rise, real interest rates are low or negative in many major economies, making precious metals a more attractive investment. Financial markets remain turbulent and in the current uncertain environment, investors will be paying close attention to underlying economic activity indicators. While the Eurozone PMI’s and retail activity in the UK will be scrutinised by investors this week, the fallout from last week’s bank stress tests are likely to drive near-term sentiment….
Sign up for our weekly Newsletter and receive the latest ETF and ETC news.
Click here to register for your free copy
Agriculture ETPs see first outflows in six weeks, as investors cut short soybean positions, take profits.The $45mn outflows from agriculture are the largest in nine weeks, but are confined to three commodities. ETFS Short Soybean Oil (SSYO) experienced outflows of $15.9mn on the back of a bullish jump in US exports. Strong price gains for wheat tempted investors to take profits, with ETFS Leveraged Wheat (LWEA) seeing $8.6mn outflows after a 23% price surge last week. Meanwhile, a 15% gain over the past month for sugar has prompted investors to reduce positions in ETFS Sugar (SUGA), totalling $13mn last week. Agricultural markets are expected to remain an investor focus, with hotterthan-expected weather conditions driving prices higher recently.
Largest outflows from energy ETCs in five weeks, totalling $48mn.
Sharp price rises in natural gas on the back of hotter weather in the US prompted investors to reduce positioning, with ETFS Natural Gas (NGAS) experiencing $13.6mn of outflows. Oil ETCs also saw position reductions with ETFS Leveraged Crude (LOIL) and ETFS Brent (OILB) seeing $17mn and $8mn in outflows, respectively. ETFS Brent 1-year (OSB1) bucked the trend, seeing modest inflows.
Source: ETFWorld – ETF Securities Commodity ETP Weekly