ETFS BENEFIT FROM WHEAT SURGE
The well-publicised jump in wheat prices in recent days has not escaped the notice of ETF investors. According to ETF Securities, its global agri-business fund rallied 7 per cent last week, topping its ETFX platform. Returns from its agriculture fund actually beat its gold fund, which returned 5 per cent over the week. However, investors have been nimble. ETF Securities has seen record shorting interest in wheat this week, as investors doubt whether the spike higher in grains will last. Likewise, investors have also reduced their exposure to oil funds.
FOOD AND BEVERAGES OUT OF FAVOUR
According to the latest flow data from iShares, there were $296.3m net inflows to Eurostoxx 600 sector ETFs last week. The banking sector along with basic resources and minerals experienced the largest net inflows. While the food and beverage sector experienced net outflows to the tune of $37.2m. The media sector has attracted the largest net inflows since the start of the year, with $235.7m. ETFs remain deeply popular. The $9.2bn of ETFs invested in Eurostoxx beats the $3.8bn invested in the open interest futures contracts for all sectors.
DE-MYSTIFYING THE FTSE 100
Yesterday’s Bank of England inflation report was particularly downbeat about the prospects for growth in the UK. However, the FTSE 100 index remains ten per cent off the lows reached in May. Is this rally going to last, or will a slower growth outlook de-rail further FTSE gains? To get a better grip on where the UK market is going, RBS is holding a seminar hosted by David Stevenson. It will look at whether the FTSE 100 is offering good value at the moment. The seminar takes place on 19 August from 5.30pm-7pm, at RBS’s offices on 250 Bishopsgate, London.