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Commodities Briefing - Archive | December, 2015

Not so shiny: A bad year for commodities (Video)

Posted on 30 December 2015 by VRS  |  Email |Print

A multi-billion dollar lawsuit for the world’s biggest iron-ore miner, BHP Billiton, after a fatal dam burst in Brazil. And a sea of plunging commodity prices throughout the year. It could be an understatement to say it’s been a bad year for commodities. Head of Currency Strategy at CIBC, Jeremy Stretch says: “It’s been almost a perfect storm as far as the commodities sector has been concerned.”
Iron ore, copper and nickel all showing the same trend, down. Conspiring against the sector, Jeremy Stretch from CIBC lists the slowdown in China, commodities priced in a strengthening dollar and basic laws of supply and demand. Jeremy added: “I think there’s also a legacy of the significant increase in investment that we’d seen over the course of the last decade or so, almost on the presumption that the Chinese growth miracle or the Chinese growth backdrop would continue at the same degree or pace.” ……………………………………….Full Article: Source

What will happen to commodity prices?

Posted on 30 December 2015 by VRS  |  Email |Print

A recent conference convened by Goldman Sachs, the US bank, polled delegates on which metals they expected to recover the best in 2016. About 27% of delegates expected gold to be the best performing commodity next year with copper coming a close second at 20% of delegates. Embarrassingly, this is the contrary view to Goldman Sachs which believes copper has the best prospects. The truth of the matter is – and whisper this – nobody actually knows for sure.
Fending off questions as to why Anglo American hadn’t acted quicker to cut loss-making operations and restructure central costs, CEO Mark Cutifani, responded somewhat wryly: “I don’t recall anyone two years ago predicting the prices we have today. I find that quite interesting”………………………………………..Full Article: Source

Markets likely to return to normalcy in 2016

Posted on 30 December 2015 by VRS  |  Email |Print

Since 2008, stock market behaviour has been affected by unforeseen events, overturning conventional wisdom and reversed the immediate course of investor behaviour. The commodity price collapse and the Chinese yuan devaluation in 2015 is a good example of that. Given such a background, what will 2016 be like? At one level, it could be a return to normal conditions, economy and corporate earnings.
It is too early to talk of a capex revival, but earnings could recover bolstered by low base effect and higher growth; commodity prices could stabilise, having fallen sharply last year. Economic growth could move higher and we are likely to end the year with a far robust economy. But it will still not be close to our expectations leaving some of us disappointed………………………………………..Full Article: Source

Not Even OPEC Can Fix Oil Glut

Posted on 30 December 2015 by VRS  |  Email |Print

Surprisingly strong crude output in the U.S. and Mideast over the past year pushed oil prices to their lowest levels in more than a decade. But for investors trying to determine whether the oil market is close to a bottom, the pace of production elsewhere in the world is a key source of uncertainty.
Producers in Russia, Brazil and Norway pumped more oil in 2015 than the closely watched forecasters International Energy Agency and Energy Information Administration had projected. Meanwhile, oil-field investments made years ago when prices were higher are set to begin producing, even as exploration-and-drilling projects scheduled to bear fruit in the coming decades are being delayed or canceled outright………………………………………..Full Article: Source

In global oil price war, Saudis blink first

Posted on 30 December 2015 by VRS  |  Email |Print

Long accustomed to cheap utilities and some of the lowest petrol prices in the world, Saudis woke to a shock Tuesday as authorities made massive subsidy cuts after falling oil prices caused a record deficit. In a clear departure from its decades-old generous welfare system, Riyadh announced prices would rise on fuel, electricity, water and even plane tickets and cigarettes.
Residents of the oil-rich Gulf kingdom have long enjoyed cheap prices on basic goods and services, but officials made clear that was no longer sustainable after the stunning drop in crude prices over the last 18 months………………………………………..Full Article: Source

Iranian re-entry into global oil market dims hope for price recovery

Posted on 30 December 2015 by VRS  |  Email |Print

Investors are losing faith in an oil-price recovery next year as Iran prepares to add more crude to a global glut. Hedge funds reduced bets on rising prices to a three-month low and kept bearish wagers near a record high in the week ended Dec. 22, data from the U.S. Commodity Futures Trading Commission show.
Oil fell to the lowest level in more than six years on Dec. 21 amid speculation suppliers from the Middle East to the U.S. will exacerbate a glut as they fight for market share. Iran, which expects sanctions over its nuclear program to be lifted by the first week of January, has secured customers for its planned supply expansion, an Iranian oil official said this month………………………………………..Full Article: Source

China sees energy consumption rising in 2016

Posted on 30 December 2015 by VRS  |  Email |Print

China expects its energy consumption to grow in 2016, the official Xinhua news agency of the world’s largest energy consumer said on Tuesday. China’s apparent demand for crude oil will reach 550 million tonnes (11 million barrels per day) and apparent demand for natural gas will hit 205 billion cubic metres, Nur Bekri, head of the National Energy Administration (NEA), said, according to Xinhua.
Electricity consumption will rise to 5.7 trillion kilowatt-hours and coal consumption will be 3.96 billion tonnes. Non-fossil fuels will also make up 13.2 per cent of primary energy needs in 2016, up from 12 per cent this year, while coal will fall to less than 62.6 per cent from 64.4 per cent, he said………………………………………..Full Article: Source

Gold Volumes Shrink on Steady Prices as Traders Look to 2016

Posted on 30 December 2015 by VRS  |  Email |Print

Gold trading volumes shrunk in New York and prices were little changed as traders shifted their focus to the outlook for 2016. Aggregate volume for gold futures has been below the 30-day average since mid-December, when the Federal Reserve raised U.S. interest rates for the first time in almost a decade.
Prices had already been heading for a third straight annual loss on the outlook for higher rates, which cut the appeal of the metal as a store of value. While the metal briefly rallied amid the Paris attacks, investors have mostly ignored bullion this year as the dollar climbed. Now, traders are focusing on how quickly Fed policy makers will continue to raise rates in 2016………………………………………..Full Article: Source

Gold’s three-year losing streak shows no signs of ending

Posted on 30 December 2015 by VRS  |  Email |Print

With gold prices down roughly 10 per cent this year, the precious metal is on track to record its third-straight annual loss, the first time it has posted a triple-loss streak since 1998. Gold prices rose modestly Tuesday, with the December delivery contract on the New York Mercantile Exchange up 0.65 per cent to US$1,077.50 an ounce.
But the precious metal has spent much of the year on a downward trajectory, as a surging U.S. dollar and a rate hike by the Federal Reserve sent investors fleeing. James Steel, chief precious metals analyst at HSBC Securities, notes that gold prices have been resilient since the rate hike, but gold faces a lot of bearish sentiment right now………………………………………..Full Article: Source

Gold and Silver Forecast 2016

Posted on 30 December 2015 by VRS  |  Email |Print

Forecasting today’s volatile, high-frequency machine driven and manipulated futures markets using fundamental analysis is futile, as a great many precious metals bulls will attest. To complicate matters, an obsession with Fed policy dominates all markets. Officials at the Federal Reserve are often less than forthcoming and are just as bumbling as the Soviet bureaucrats when it comes to centrally planning our economy.
Nevertheless, beneath all of the artificial influences and all of the leveraged paper, the gears of the physical market for gold and silver still turn. We can be sure prices will reflect actual supply and demand for physical metals at some point, even if we do not know when. With that in mind, here is a look ahead to 2016………………………………………….Full Article: Source

Uranium: The top-performing mining commodity of 2015

Posted on 30 December 2015 by VRS  |  Email |Print

Despise missing expectations for the year, uranium —the radioactive material used as fuel for power-generation plants— has emerged as the best-performing mining commodity of 2015. Spot uranium prices last traded at $35.80 per pound, less than the expected $40 per pound expected, but on track for gains of 0.85% since starting the year at $35.50/lb, according to Australian investment bank, Macquarie.
The metal that powers nuclear reactors has been gradually recovering from a sharp decline in the wake of Japan’s Fukushima disaster in 2011, and analysts expect the commodity to continue putting a smile on investors’ faces next year, as prices are set to keep climbing………………………………………..Full Article: Source

Supply cuts to provide the floor for nickel in 2016

Posted on 30 December 2015 by VRS  |  Email |Print

Nickel prices were battered in 2015 and were the worst-hit among the base metals complex mainly dragged down by plummeting Chinese demand and absence of anticipated shortage following the Indonesian ban in January 2014.
Stainless steel output: Stainless steel production accounts for about two-thirds of nickel demand and hence, slowing demand from the stainless steel industry has hurt the silvery-white base metal the most. The International Stainless Steel Forum showed global production of the alloy dropped in the first nine months of 2015………………………………………..Full Article: Source

Global Metals Prices Hinge on China Production

Posted on 30 December 2015 by VRS  |  Email |Print

With an interest-rate increase from the U.S. Federal Reserve out of the way, battered metals investors are returning their focus to China, where plans to trim a supply glut have sparked hopes for a rebound in prices in 2016.
Prices of aluminum and copper—the world’s two most actively traded metals—are trading up 6% and 5%, respectively, from recent multiyear lows. Uncertainty about the Fed’s move and its impact on the U.S. dollar helped to keep a lid on metals prices ahead of the central bank’s announcement. Most commodities are priced in U.S. dollars………………………………………..Full Article: Source

Performance of Precious Metals–Based ETFs in 2015

Posted on 30 December 2015 by VRS  |  Email |Print

Investing in physical precious metals can be a costly proposition due to associated factors like transportation and warehousing. For precious metal investors, ETFs can provide an alternative investment option, as can gold stock investments and gold-based mutual funds.
The largest ETF, the SPDR Gold Shares ETF (GLD), has generally followed the returns in gold. GLD fell 9.3% due to the 9.6% fall in gold prices so far in 2015. The iShares Silver Trust ETF (SLV) fell 9.1% owing to the 8.9% fall in silver prices………………………………………..Full Article: Source

ETFs tracking China’s onshore markets struggle to find an audience

Posted on 30 December 2015 by VRS  |  Email |Print

The lopsided performance of exchange-traded funds tracking China’s turbulent domestic markets is stanching the flow of new money into a market that once excited investors. Investors pulled $418 million out of ETFs tracking Chinese stocks that trade on the Shanghai and Shenzhen exchanges in the year to Dec. 21, withdrawals representing more than half the total assets held in those funds, according to FactSet Research Systems Inc.
Over the same period, ETFs tracking Chinese stocks not traded on the mainland attracted $1.2 billion. Much of the outflows came during a late-summer rout of once-high-flying stocks that exposed issues with government intervention, corruption and strict regulations for foreign investment………………………………………..Full Article: Source

3 Year-End Portfolio Tips For ETF Investors

Posted on 30 December 2015 by VRS  |  Email |Print

Many investors have now mentally put the bow on 2015 and are looking ahead to greener pastures in 2016. The lack of forward progress this year has likely created a sense of longing for a more discernable trend to develop in the New Year.
That being said, there are still a few days left to shape up your ETF portfolio and put it in a position to achieve success prior to tilting that glass of champagne and signing off for 2015. 1. Review Your Current Holdings: It may seem simplistic, but objectively reviewing your holdings on a regular basis is something that few investors take the time to do………………………………………..Full Article: Source

The Renminbi Has No Chance to Become a Reserve Currency Until 2036

Posted on 30 December 2015 by VRS  |  Email |Print

The Chinese renminbi has been recently included in the IMF’s reserve currency basket, which previously consisted of the US dollar, the euro, the British pound, and the Japanese yen. These currencies represent the developed world’s most stable economies, so having the renminbi among them is a nice compliment to Beijing. It is not, however, an earth-shattering move in other respects.
Many people started asking me whether the Chinese currency will ultimately become the world’s reserve currency. In short, I don’t see the renminbi overthrowing the US dollar anytime in the next few decades. My crystal ball gets fuzzy after 2036, but for right now, it comes nowhere close to meeting the basic conditions for becoming the major reserve currency………………………………………..Full Article: Source

Russia’s stricken currency drops to 2015 low amid oil price slump

Posted on 30 December 2015 by VRS  |  Email |Print

Russia’s battered ruble on Tuesday continued its slide on the back of low oil prices, reaching a new 2015 low against the dollar and dropping to below 80 against the euro. The Russian currency stood on Tuesday at 72.85 against the dollar, down from 72.46 on Monday.
The ruble meanwhile stood at 80.02 against the euro, dropping below 80 for the first time since late August. The slide in oil prices and Western sanctions over Moscow’s role in the Ukraine crisis have pummeled the oil-dependent Russian economy in recent months. At his annual press conference earlier this month President Vladimir Putin assured the country could weather the headwinds, despite volatility in oil prices………………………………………..Full Article: Source

Pressure Grows on Saudi Arabia’s Currency

Posted on 30 December 2015 by VRS  |  Email |Print

Back in September I wrote an article here on Real Money talking about what could be shaping up as a currency crisis for Saudi Arabia. I explained that the Saudis were heavily short dollars, due to a surge in dollar-denominated loans. To make matters worse, of course, the continued crash in oil prices, largely of Saudi making, was only intensifying their dollar cash flow problem.
Recently, it was announced that the Kingdom was making huge cuts in subsidies to its citizens. Everything, from gasoline to power to water and monthly guaranteed income supports, will take a hit. The problems will continue to rise as long as oil prices stay down where they are………………………………………..Full Article: Source

Obama Plans to Leave it All on the Field With Climate Change

Posted on 30 December 2015 by VRS  |  Email |Print

Pres­id­ent Obama de­clared that 2015 would be a “year of ac­tion” on cli­mate change. With the re­lease of land­mark emis­sions reg­u­la­tions, agree­ments with coun­tries like China and Brazil, and the clinch­ing of an in­ter­na­tion­al cli­mate-change deal in Par­is, it seemed to live up to the hype.
The Par­is agree­ment—which sets nearly 200 coun­tries on the path to com­bat cli­mate change—could be a walk-off-the-field mo­ment, the cul­min­a­tion of years of cli­mate work. But Obama’s still got a full year left and has prom­ised to “leave it all on the field.” Even as the clock runs down and the reg­u­lat­ory cal­en­dar emp­ties, he has more cli­mate work in mind………………………………………..Full Article: Source

Paris Agreement Sets the Stage for Global Greenhouse Gas Emission Reductions

Posted on 30 December 2015 by VRS  |  Email |Print

On December 12, 2015, 195 countries adopted the first global agreement addressing climate change. The Paris Agreement was adopted following two weeks of negotiations during the 21st Conference of the Parties (COP21) to the United Nations Framework Convention on Climate Change (UNFCCC).
The Agreement marks the first time that developed and developing countries have joined together to address what the Parties consider “an urgent and potentially irreversible threat to human societies.” The Agreement’s goals are lofty. First, the Agreement seeks to limit the increase of the global average temperature to well below 2°C over pre-industrial levels. The Parties also committed to “pursue efforts” to limit warming to only 1.5°C above pre-industrial levels………………………………………..Full Article: Source

These 5 Trends Will Shape the Global Economy in 2016

Posted on 29 December 2015 by VRS  |  Email |Print

Every year brings its share of economic events that take us by surprise. Few people predicted the collapse in oil prices that started in the summer of 2014, or were able to time the sharp decline in economic growth in China that started a few months ago.
That said, many of the economic trends that shape our world can be spotted ahead of time by careful observers. For instance, many pundits argued that the Federal Reserve wouldn’t be able to raise rates this year, but a close examination of the data would have enabled you to predict the Fed’s December liftoff. In 2016, new economic trends will emerge or gain steam, and shape the world we live in for the better or worse………………………………………..Full Article: Source

Commodity funds hemorrhage cash as investors bail at record pace

Posted on 29 December 2015 by VRS  |  Email |Print

Investors can’t seem to get away from non-energy commodities fast enough. A record US$857 million was pulled this year from U.S. exchange-traded funds backed by broad baskets of everything from grains to metals, according to data compiled by Bloomberg through Dec. 23.
The value of the funds plunged 26 per cent as raw materials tumbled to a 16-year low. Hedge funds are expecting more losses, betting on price declines for gold, copper, corn and natural gas. While energy-linked funds were the only commodity group to see net inflows this year, oil and gas didn’t escape an almost across-the-board decline in prices………………………………………..Full Article: Source

Commodities’ cycle upsets investor returns

Posted on 29 December 2015 by VRS  |  Email |Print

If one of your new year’s resolutions in 2015 was to invest in a FTSE 100 tracker, you may be ruing the day you did so. With the end of the year upon us, the global resources rout has dragged the index down by more than 7 per cent since January (though an average dividend yield of 4 per cent provides some consolation).
The big question is whether the oil companies and mining stocks that have dug passive investors into a deep hole can climb out of it next year — but few are willing to predict a happy ending in the short term. The table of the FTSE 100’s biggest losers is dominated by the miners. Topped by Anglo American — down 75 per cent this year as the collapse in the iron ore price caused its dividend payments to cave in — Glencore, BHP Billiton and Antofagasta make up four of the worst five performing stocks, with Rio Tinto languishing at number seven………………………………………..Full Article: Source

Survival of fittest for commodities shipping firms in 2016

Posted on 29 December 2015 by VRS  |  Email |Print

Shipping companies that transport commodities such as coal, iron ore and grain face a painful year ahead, with only the strongest expected to weather a deepening crisis caused by tepid demand and a surplus of vessels for hire.
The predicament facing firms that ship commodities in large unpackaged amounts - known as dry bulk - is partly the result of slower coal and iron ore demand from leading global importer China in the second half of 2015. The Baltic Exchange’s main sea freight index - which tracks rates for ships carrying dry bulk commodities - plunged to an all-time low this month………………………………………..Full Article: Source

The Bear Market In Commodities Enters Year 5

Posted on 29 December 2015 by VRS  |  Email |Print

Now that the end of the year is upon us, reflection on the events of 2015 can help us to prepare for the year ahead. Commodity prices peaked in 2011/2012 and have moved lower since. It is tempting to look for bargains in markets. Investors and traders invariably love to buy markets that have decreased in value.
Commodities are ubiquitous assets. While assets like stocks and bonds are investment vehicles watched by many around the world, almost every person on planet earth consume raw materials. Each day demographics increase demand for raw materials in that population increases on a daily basis. In 1959, the year I was born, there was just shy of 3 billion people on earth. As we move into 2016, more than 7.4 billion people make up the addressable market for many raw materials………………………………………..Full Article: Source

Oil companies brace for a grim 2016 amid sustained price crash

Posted on 29 December 2015 by VRS  |  Email |Print

As a miserable year for the oil industry draws to a close, any relief executives might feel will be tempered by the knowledge that 2016 is shaping up to be even worse.The collapse in oil and gas prices that began in the summer of last year has already cost hundreds of thousands of jobs, and caused projects worth hundreds of billions of dollars to be cancelled or delayed.
Today, the external environment is more challenging than it was a year ago, and the energy companies’ ability to cope with tough conditions is diminished. For oil and gas producers, 2016 will be a year of cost-cutting, restructuring, refinancing when it is possible, and in some cases bankruptcy when it is not. ……………………………………….Full Article: Source

Crude Oil Market to Balance Some Time in 2016, Says Saudi Aramco Chairman

Posted on 29 December 2015 by VRS  |  Email |Print

Crude oil markets are likely to balance some time next year as supplies from North America, including U.S. shale, continue to decline significantly, the chairman of Saudi Arabia’s giant oil company said Monday.
“Supply has plateaued in North America and [is] declining by significant amounts. We expect that to continue and perhaps accelerate in 2016,” Khalid al-Falih, chairman of Saudi Arabian Oil Co., known as Saudi Aramco, said in a news conference in Riyadh. “We see the market balancing some time in 2016. We see demand ultimately exceeding supply…Prices in due course will respond,” he said………………………………………..Full Article: Source

Will oil continue to drive volatility in 2016?

Posted on 29 December 2015 by VRS  |  Email |Print

Perhaps the biggest financial story of 2015 has been the continued collapse of oil prices, which has been a noticeable drag on the stock market. And some argue that the oil market will continue to drive stock movements in the year ahead. “Oil is the meat of the volatility sandwich here, and I don’t think that changes,” Max Wolff of Manhattan Venture Partners said Wednesday on CNBC’s “Trading Nation.”
“I think the first half of 2016 is sort of a heavy-duty repeat of the second half of 2015 on the vol side,” Wolff continued, “although I do think you start to see a bottom in and a rebuild going into the second half of 2016.”……………………………………….Full Article: Source

Will Gold Come Back In 2016?

Posted on 29 December 2015 by VRS  |  Email |Print

As of Thursday, December 24, the price of gold is down more than $100 per ounce in 2016. Gold peaked at just over $1300 in the first month of the year. Since then, the price has made lower highs and lower lows throughout the year, disappointing those who believe that gold is the ultimate currency, real money and the only hard asset that really is a true store of value in the world.
Gold outdates all fiat currencies in existence today. In the wake of the financial crisis that swept across the globe in 2008, interest rates have moved to the lowest levels of our lifetimes. Although the Fed raised rates by 25 basis points for the first time in nine years this month, they were at zero before the action………………………………………..Full Article: Source

Gold: What Really Drives Prices?

Posted on 29 December 2015 by VRS  |  Email |Print

What stops a trend? There are a litany of answers that can fill in here, and many of them are ‘right’ to some degree or have at least some pertinence, but if you really get down to brass tacks – what is it that kills a trend? At it’s core, all trends stop (and all prices are driven) for two very simple but related reasons: New buyers/sellers or a lack thereof. That’s really it.
Much of financial media is focused on the inputs compelling those forces, but in it’s most simplistic form – price action is really just driven by sentiment. It’s the reasons driving that sentiment that has the world transfixed on the news. If something really bad happens, a bunch of new sellers will often want to jump in the market and this can drive prices lower………………………………………..Full Article: Source

Commodity price slump undercuts mining sector

Posted on 29 December 2015 by VRS  |  Email |Print

The bottom has fallen out of the commodities market and while Canadian mining firms look set to ride it out, there could be a hit to the Canadian economy because of low metals and minerals prices. They’re all mined or produced in Canada, part of an industry that employs 380,000 Canadians, dominates the stock market and is a key driver of the economy, contributing $54 billion to domestic GDP in 2013.
“It’s so connected to so many parts of the economy. There is a huge mining ecosystem in Canada,” says Pierre Gratton, president and CEO of the Mining Association of Canada………………………………………..Full Article: Source

Uranium set to gain

Posted on 29 December 2015 by VRS  |  Email |Print

Uranium prices are expected to outperform other commodities in 2016 and beyond as a global climate change deal and growing demand from Asia bolster the prospects of the nuclear industry.
The metal that powers nuclear reactors has been gradually recovering from a sharp decline in the wake of Japan’s Fukushima disaster in 2011, and has gained this year as several other commodities slumped due to oversupply and concerns about Chinese economic growth and US monetary tightening………………………………………..Full Article: Source

Global Mining Companies Steel for Worse in 2016

Posted on 29 December 2015 by VRS  |  Email |Print

Global miners are battling to stay afloat after enduring one of the toughest years in recent times, with tumbling commodity prices and supply gluts set to force more closures and massive cuts in 2016, analysts say.
China’s once insatiable appetite for commodities — boosted by an unprecedented investment boom in the world’s second-largest economy — has waned, with its shift towards consumption-driven growth dampening demand………………………………………..Full Article: Source

Iron ore rings in 2016

Posted on 29 December 2015 by VRS  |  Email |Print

Iron ore stockpiles at ports in China are heading into 2016 at the highest level in more than seven months as expanding low-cost supplies and sputtering demand in the biggest buyer spur concern that a glut will persist, hurting prices.
“Stockpiles have been on the rise because domestic demand is getting weaker and shipments from the major producers have increased,” Dang Man, an analyst at Maike Futures in Xi’an, said by phone on Monday. Mills have “been cutting production, which reduces demand for iron ore. So a lot of the stocks have remained at ports.”……………………………………….Full Article: Source

December Zinc Price Forecast: Bearish Thanks to Sister Metals

Posted on 29 December 2015 by VRS  |  Email |Print

On December 22, zinc futures traded close to 1% lower, representing an overall weak global trend for it and other metals. On the London Metal Exchange, zinc dropped by 0.7% with analysts attributing the bearish turn of zinc futures trade to a weakness in copper and other base metals in the global markets.
The reason? Questionable sustainability of Chinese demand, the world’s largest consumer of copper and other metals. This happened just several days after zinc futures rose nearly 0.5%, due to an increase in demand in India’s domestic spot market. According to the Economic Times, zinc for delivery in January also rose, 0.3% during the same time frame………………………………………..Full Article: Source

Why Investors Are Fleeing Commodity ETFs (Video)

Posted on 29 December 2015 by VRS  |  Email |Print

Investors can’t seem to get away from non-energy commodities fast enough. A record $857 million was pulled this year from U.S. exchange-traded funds backed by broad baskets of everything from grains to metals. Bloomberg’s Joe Deaux reports on “Bloomberg Markets.”.………………………………………Full Article: Source

10 Most Heavily Traded ETFs of 2015

Posted on 29 December 2015 by VRS  |  Email |Print

The ETF industry has been roaring with explosive growth seen in recent years and is now a preferred investment vehicle for financial advisors over mutual funds and hedge funds. Thanks to unique strategies, creativity, transparency, diversification benefits, enhanced tax competences, low turnover and low cost, the ETF now has a bigger asset base than hedge funds, overcoming all odds in its investment tool.
In particular, investors seek to trade in ETFs that can easily be purchased and sold on the market, suggesting that the ETF should have enough liquidity. Volume, or the number of shares traded in a particular period, is definitely the most important consideration for determining the liquidity of a particular fund………………………………………..Full Article: Source

Top Performing ETFs Of 2015

Posted on 29 December 2015 by VRS  |  Email |Print

What was the top-performing ETF of 2015? The answer might surprise you. After all the hoopla surrounding the bursting of China’s stock market bubble only a few months ago, it’s somewhat ironic that the No. 1-performing ETF on this list is a China fund.
China ETFs Surprise To The Upside: The Market Vectors China AMC SME-ChiNext ETF surged 52.6% in the year-to-date period through Dec. 22, making it far and away the best-performing ETF of 2015 (excluding leveraged and inverse ETFs). That said, the fund’s ascent has been anything but smooth. At its highest point in June, CNXT was up as much as 129% for the year; at its lowest point in September, the fund gave back essentially all of those gains………………………………………..Full Article: Source

The only global currency to crush dollar this year

Posted on 29 December 2015 by VRS  |  Email |Print

Bitcoin is up over 40 percent this year. The U.S. Dollar Index: a gain of 9 percent. The U.S. dollar has had a nice run. It’s been the talk of global currency trading all year long. And why not? After years of a weak greenback due to dovish Federal Reserve policy, the Dollar Index has extended big 2014 gains, up near-9 percent against a basket of major world currencies this year.
Some individual currency trades, like USD/Brazil Real, have netted currency investors huge returns. But to find what’s arguably been the best global currency in 2015, an investor might need to put quote marks around the term “global currency.”……………………………………….Full Article: Source

Zimbabwe Switches to Yuan as Reserve Currency

Posted on 29 December 2015 by VRS  |  Email |Print

Zimbabwe’s surprising recent announcement that it would shift to the Chinese yuan as its reserve currency is a sign of friendship with China, but probably not much more, say regional business people and economists.
The announcement last week raised eyebrows among economists outside the country. The nation’s finance minister touted the move as a huge advance in relations between the two nations, and noted that China would use the occasion to to cancel a bundle of debts, estimated at $40 million, that are due this year………………………………………..Full Article: Source

KRX to list second carbon offset type from May

Posted on 29 December 2015 by VRS  |  Email |Print

The Korea Exchange (KRX) will start listing Korean Offset Credits (KOCs) from next May, the bourse operators announced, hoping to boost trading activity in the country’s fledgling carbon market. The exchange made the announcement following pressure from market participants to add the offset type. The KRX currently offers trade in Korean Allowance Units (KAUs) and Korean Carbon Units (KCUs).
When the government issues new offsets, whether from projects under its domestic offset scheme or as replacement for cancelled CERs, they are issued as KOCs, and can only be used for ETS compliance after they are converted to KCUs………………………………………..Full Article: Source

2016 will accelerate environmental progress. Here are 5 reasons why

Posted on 29 December 2015 by VRS  |  Email |Print

2015 was a breakthrough year for our environment – one of the most important in decades. The nations of the world agreed to a climate deal that finally gives us a chance to turn the corner toward safety. America put in place the first-ever limits on carbon pollution from its largest source, power plants.
And the Senate passed sweeping bipartisan legislation that promises to fix our chemical safety system, which has been broken for 40 years. At Environmental Defense Fund, we’re proud to have played key roles in all of these breakthroughs. Still, even with all that we accomplished, I expect 2016 to top the year now coming to an end………………………………………..Full Article: Source

Will 2016 herald recovery, consolidation of commodities?

Posted on 28 December 2015 by VRS  |  Email |Print

If 2015 was the year in which the growing oversupply of key commodities led to a rout in prices, will 2016 bring the point of capitulation, leading to consolidation and the start of recovery? That would certainly be the hope of many beleaguered commodity producers, be they members of OPEC, shale gas drillers in North America or the big companies that bet their futures on what they thought would be China’s endless appetite for coal, iron ore, copper and liquefied natural gas (LNG).
But the problem with hoping for a rationalisation of supply is that everybody wants someone else to shut down or cut production. Everywhere in commodity markets, producers are still following the tactics that have largely failed for the past few years………………………………………..Full Article: Source

Seven (possibly) magnificent commodity bets for 2016

Posted on 28 December 2015 by VRS  |  Email |Print

It’s always tempting for commodity analysts to issue forecasts for the coming year, even though we intrinsically know that the future is inherently uncertain and even the most reasoned expectations can be easily confounded by events.
With that in mind, and with a nod to my fellow Australians’ love of a punt, I’ve decided rather to do a list of bets I may be tempted take in commodity markets in 2016, assuming I was allowed to wager. 1. Crude oil will trade both below $30 a barrel and above $60 in 2016………………………………………..Full Article: Source

Commodities: No Rebound in Sight

Posted on 28 December 2015 by VRS  |  Email |Print

The commodities malaise of 2015 will continue in the new year. Precious and industrial metals will probably fall further in the first half of 2016, pressured by rising global supply, weak Chinese demand, and an appreciating dollar.
Prices of precious metals dropped more than 11% in 2015, and industrial metals lost more than a quarter of their value, pummeled by the strength of the dollar and concerns of a slowdown in China, the world’s largest consumer of commodities, as global production continues to rise. Investors and analysts expect prices to remain constrained in 2016, given that supply cuts will be required to balance the market and demand growth from China will probably remain sluggish………………………………………..Full Article: Source

The commodity roller-coaster ride is not over yet

Posted on 28 December 2015 by VRS  |  Email |Print

The global commodity supercycle is hardly a new phenomenon. Though the details vary, primary commodity exporters tend to act out the same story, and economic outcomes tend to follow recognisable patterns. But the element of predictability in the path of the commodity-price cycle, like that in the course of a roller coaster, does not make its twists and turns any easier to stomach.
Since the late 18th century, there have been seven or eight booms in non-oil commodity prices, relative to the price of manufactured goods. (The exact number depends on how peaks and troughs are defined.)……………………………………….Full Article: Source

After a brutal 2015, what’s on tap for commodities?

Posted on 28 December 2015 by VRS  |  Email |Print

Commodities are suffering from their worst year since 2008. Industrial commodities, in particular, are seeing outsize losses, but it isn’t going to be all gloom and doom for the sector in the new year. Sentiment in the commodities market has been downbeat for the bulk of 2015, with iron ore, platinum. copper and coal among those seeing the biggest losses.
The Bloomberg Commodity Index BCOM, +0.49% a broadly diversified commodity-price index, has fallen more than 26% in 2015. It is headed for its fifth straight losing year and its worst yearly drop since 2008. The index stands around its lowest level since 1999………………………………………..Full Article: Source

3 Scenarios For Oil in 2016: RBC commodity chief

Posted on 28 December 2015 by VRS  |  Email |Print

Crude oil may have rallied more than eight percent this week and is trading near 2004 lows, but it doesn’t mean we’ve seen the bottom in the market. In fact, the recent bullish trend could be short-lived in 2016.
RBC Capital Markets’ Global Head of Commodity Strategy Helima Croft outlined three potential scenarios for WTI crude on CNBC’s “Fast Money” for the new year. The most bullish situation would be seeing more than a million barrels of oil pulled off the market and prices averaging in the $60 dollar range………………………………………..Full Article: Source

Oil Price Could Fall To $20 In 2016 – IMF

Posted on 28 December 2015 by VRS  |  Email |Print

Nigeria may be in for harder times than previously envisaged as the International Monetary Fund has predicted that crude oil prices may slump to as low as $20 per barrel in 2016.In the ‘IMF Executive Board Concludes 2015 Article IV Consultation with Iran’ report, the body highlighted that the price of crude oil could drop by between $5 and $15 in 2016, cableng.com reports.
As of Thursday, the price of crude oil in the international market averaged $37. On December 17, the price fell to $36 per barrel. The Federal Government 2016 budget had based the 2016 budget on a benchmark oil price of $38 per barrel. If the IMF prediction comes true, the country will be in serious trouble as there won’t be any buffer for the budget……………………………………….Full Article: Source

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