Kris Walesby

Equity markets were mixed last week, with promising economic data being offset by lingering political and policy tensions and stock specific news.

The S&P/ASX 200 added 0.4% last week. VanEck Vectors Australian Resources ETF (MVR) and ETFS S&P/ASX High Yield Plus ETF (ZYAU) were the top performing domestic equity funds for the week.

The S&P/ASX 200 declined by 0.7% as more hawkish statements from RBA saw the market dip on Tuesday. The S&P 500 gained 0.5%, also led by shifting rate expectations. The EURO STOXX 50 lost 2.1% for the week. BetaShares Global Gold Miners ETF (MNRS) was the top performing equity fund for the week as the market continued to turn positive for precious metals.

Global equities performance was mixed. The S&P/ASX 200 declined 0.3%. The S&P 500 rose 0.1%, while the EURO STOXX 50 rose 0.6%. Agricultural and Resources ETFs (QAG and YANK) were the top performing equity funds for the week, while gold miners (GDX and MNRS) were amongst the poorest performers.

Global equities declined last week as monetary policy expectations were re-aligned following hawkish comments from central bankers across the globe.

The S&P/ASX 200 declined by 1% last week as financial stocks continued to suffer from bank-levy related selling.

The S&P/ASX 200 rebounded last week, posting a 1.7% gain despite declining commodity prices.

Global equity markets were mostly in the red last week, with former FBI director James Comey’s testimony and the British election weighing on the market.

With the European outlook improving, could now be the time to invest?

ETF Securities Group announced today that it will take full ownership of the ANZ ETFS joint venture, launched in partnership with Australia and New Zealand Banking Group in May 2015.

The S&P/ASX 200 ended the week unchanged with a recovery in the resources sector offsetting declines in the major banks on news of the federal government’s new bank tax.

The S&P/ASX 200 declined 1.4% for the week, led lower by the materials sector in response to a sharp drop in commodity prices. Financial stocks also declined heavily.

Global stocks rallied last week following Emmanuel Macron’s win in the first round of the French presidential election. The S&P/ASX 200 gained 1.2%, the S&P 500 added 1.5% and the Nikkei 225 gained 3.1%. In Europe the EURO STOXX 50 jumped 3.5%. The top five performing ETFs in Australia last week were all European equity-focused funds. ANZ ETFS EURO STOXX 50 ETF returned 6.25% for the week.

The S&P/ASX 200 declined 0.6% for the week as banks and miners rebounded on Friday reversing earlier declines. The S&P 500 gained 0.9% on optimism around the pace of US tax reforms. US small- and mid-cap ETFs (IJR, IRU and IJH) were amongst the top performers for the week.

Global equities mostly dipped last week on escalating tensions surrounding North Korea. The S&P/ASX 200 started the week strongly, before pulling back to end the week up 0.5%. The S&P 500 declined 1.1%, the EURO STOXX 50 dropped 1.4% and the Nikkei 225 dropped 1.8%. Gold miners (GDX and MNRS) and Australian property (SLF, MVA and VAP) ETFs were the top performing funds for the week. US mid/small cap (IJH, IHJR, IRU and VTS) and Japanese equity funds (HJPN) were the poorest performers.

Australian portfolios are among the least diversified among developed markets. Compared to global benchmarks, Tech is currently the biggest underweight in domestic portfolios.

Global equities started the week strongly before dipping on news of the US military strikes on Syria. The oil price jumped and safe haven assets including gold and US dollars gained ground. Energy stocks were the top performing sector in the domestic market, while global gold mining funds (GDX and MNRS) were the top performing equity ETFs.

The S&P/ASX 200 gained 1.9% last week, ending the month up 2.7% and nearing two year highs. Financial stocks led the way with three bank stock ETFs (MVB, OZF and QFN) being amongst the top performers for the week. The S&P 500 gained 0.8% and the EURO STOXX 50 added 1.7% as Europe’s recovery continues to make headlines. ANZ ETFS EURO STOXX 50 ETF (ESTX) is the top performing ETF on a 1 month basis for the second week running.

Global equities retreated last week as fears arose that Trump’s healthcare reforms will be slowed by US Congress. The S&P/ASX 200 declined over 1.5% before recovering on Friday to end the week down 0.8%. Defensive stocks from sectors such as utilities, health care and consumer staples were the top performers for the week. Offshore, the S&P 500 lost 1.4%, the Nikkei dropped 1.3%, while the EURO STOXX 50 continued to outperform; on a one month basis ANZ ETFS EURO STOXX 50 ETF has returned 7.5%.

The US Federal Reserve’s 25 basis point rate hike last week ensured equity markets mostly ended the week in positive territory. The S&P/ASX 200 added 0.4% for the week, nearing its 2017 highs following a strong week for the resources sector. The S&P 500 gained 0.2%. The EURO STOXX 50 gained 0.9% as the Dutch election passed without providing a major shock. Resource sector ETFs (QRE, OZR and MVR) were among the top performers for the week.

In this week’s ANZ ETFS Trade Idea we look back at companies that reported full-year earnings in February and examine how they were received by the market and what impact they had on ANZ ETFS’ two domestic equity focused ETFs; ZYAU and ZOZI.

The S&P/ASX 200 added 0.8% for the week, with financial sector gains offsetting the impact of lower commodity prices. The S&P 500 lost 0.4% as the implied probability of a March Fed hike reached 98%. Bond yields moved higher with US 10 year Treasuries up 10bps and Australian 10 year government bond yields up 17bps. Three of the five best performing ETFs for the week were domestic financial sector funds (MVB, QFN and OZF).

The S&P/ASX 200 declined 0.2% for the week, dragged down by the resources sector. The S&P 500 gained 0.7% following a positive reaction to Trump’s address to congress on Wednesday.

The S&P/ASX 200 declined 1.2% for the week, dragged down by the resources sector; the five poorest performing funds for the week were all mining-related ETFs. In the US, the S&P 500 gained 0.7% and the ANZ ETFS S&P 500 High Yield Plus ETF (ZYUS) returned 1.5% as defensive sectors such as utilities and real estate returned to favour on uncertainty around key tax reforms. In Europe, the EURO STOXX 50 declined 0.1% despite positive growth data and a declining euro.

The S&P/ASX 200 gained 1.5% for the week, with banks and miners driving performance upwards despite some disappointing earnings announcements. Financial sector funds (MVB, QFN and OZF) were the top performing unleveraged ETFs for the week. The S&P 500 gained 1.5% and the EURO STOXX 50 rose 1.2%, while the Nikkei 225 ended the week 0.7% lower. The MSCI Emerging Markets Index continued to trend upwards, having gained 8.9% in US dollar terms so far in 2017.

Equity markets were generally positive for the week on earnings, growth and inflation expectations. The S&P/ASX 200 gained 1.8%, the S&P 500 gained 0.8%, the Nikkei 225 rose by 2.4% and the Shanghai Composite gained 1.8%. Chinese equities (IZZ) and global gold mining ETFs (MNRS and GDX) were amongst the top performers for the week.

Summary

The S&P/ASX 200 declined 1.6%, the EURO STOXX 50 declined 0.9% and the Nikkei dropped 2.8% last week. The S&P 500 posted a small gain. Gold, gold mining and Australian dollar ETFs topped the performance tables for the week. US dollar and Australian resource sector ETFs were the poorest performers.

Risk assets returned to favour last week with global equity markets mostly positive. The S&P/ASX 200 rose 1.1%, the S&P 500 was up 1.0% and the Nikkei gained 2.1%. Resource sector, Asian and emerging market ETFs were the top plays, whilst bearish equities and precious metals were the poorest performers.

Global equity markets broadly declined last week. The S&P/ASX 200 fell 1.2%, the EURO STOXX 50 and the Nikkei 225 both dropped 0.8%. The S&P 500 closed modestly lower (by 0.2%) with relatively light trading volumes during the US government’s administration transition. Bearish Australian equity ETFs (BBOZ, BEAR) and the hedged Global Gold Miners ETF (MNRS) were the best performers for the week. The leveraged long equity ETF (GEAR) and the financials sector ETF (OZF) were the worst performers.

Highlights Of The Week:

Key highlights:

Gold continued its year-end bounce following a big post-election sell-off, rising 2.6% for the week and 3.9% from its December low. Gold mining ETFs (GDX and MNRS) were among the top performers for the week. Platinum and Palladium also posted big gains with ETPMPD and ETPMPT rising 9.0% and 4.6% respectively.

Last week saw the Fed raise interest rates for the first time in 12 months and signal the possibility of three further increases in 2017. Europe and Japan were the big movers in global equity markets on the back of weakening currencies, with the EURO STOXX 50 gaining 1.9% and the Nikkei 225 gaining 2.1%. Infrastructure, Healthcare and Telecoms global sector funds were amongst the week’s top performers and the ANZ ETFS EURO STOXX 50 ETF (ESTX) gained 3.1% in Australian dollar terms.

Last week the S&P/ASX 200 rose 2.1% and the S&P 500 rose 3.1%, reaching a new record high. The EURO STOXX 50 gained 6.1% on the back of the ECB’s decision to extend its bond buying programme.

Uncertainty surrounding the global political landscape and a move towards more populist leaders in the developed world will continue to be a key driver of financial market volatility in 2017.

Global equities mostly retreated last week following recent gains. The S&P/ASX 200 dropped 1.2%, the S&P 500 fell 1% and the EURO STOXX 50 fell 1.1%. Energy ETFs were the top sector play for the week, with BetaShares’ FUEL gaining 2.5% while resource sector ETFs were amongst the poorest performers. iShares MSCI Singapore ETF (ISG) was the top international equity ETF, gaining 2.5%.

The S&P/ASX 200 traded in a tight range last week, declining 0.2%. The S&P 500 held onto its post-election gains, while the Dow Jones Industrial Average hit a new all-time high. In Japan, the Nikkei 225 gained 3.4% as the yen dropped 4% against the US dollar. US small- and mid-cap companies were amongst the top performers for the week, as a stronger US dollar dragged on the performance of large-cap multi-nationals.

Post-election market highlights:

The S&P/ASX 200 traded in a tight range last week, declining 0.2%. The S&P 500 held onto its post-election gains, while the Dow Jones Industrial Average hit a new all-time high. In Japan, the Nikkei 225 gained 3.4% as the yen dropped 4% against the US dollar. US small- and mid-cap companies were amongst the top performers for the week, as a stronger US dollar dragged on the performance of large-cap multi-nationals.