Stock index trackers and commodity ETCs remain in demand even as hopes of a rally have faded. Certain sectors are also receiving more attention.
20 December 2022. Frankfurt (Frankfurt Stock Exchange). Price declines instead of the hoped-for year-end rally weigh on the mood of the ETF market ahead of Christmas. While positive US inflation data last week fueled hopes of an end to interest rate hikes by central banks, the monetary watchdogs of the FED and ECB abruptly cooled those expectations. . The DAX moved from a healthy 14,600 points mid-week to 13,900 points more recently.
Sales evolve quite differently. “Compared to year on year, our weekly sales were below average,” reports Fabian Wörndl from Lang & Schwarz. In one of the weakest trading weeks of the year, stock index trackers and commodity ETCs were the main traders. “Some customers are buying from resets very often, but the majority are holding back now.”
Baader Bank’s Holger Heinrich, on the other hand, reports that selling in large stock ETFs has picked up. At Baader too, purchases and sales balance each other out.
Relaunched the US stock index tracker with an ESG focus
In the case of US equity products, ESG variants are again top sellers. Including the JPM Global Research Enhanced Index Equity (ESG) UCITS ETF – EUR Hedged (acc). (IE0000UW95D6). With a volume of a good 25 million euros, it is one of the small ETFs on the market.
The iShares S&P 500 ESG UCITS (Acc) EUR-Hedged ETF (IE000CR7DJI8>) tops the buy lists, which has only been on the market since August this year and, with a volume of 60 million euros, is also one of the smaller products in the ETF market. Vanguard prefers ESG North America All Cap (IE000L2ZNB07), also a recently launched ETF.
In addition to the encouragement for global stocks, Lang & Schwarz has noticed increased interest in individual sectors: L&G Hydrogen Economy (IE00BMYDM794) is predominantly bought.
ETC commodities: speculation on Chinese demand
After the easing of the Covid in China, raw materials are in focus: “We see more purchases here in the copper mines”, explains Wörndl. There is obviously speculation that prices will rise if China starts to demand more raw materials again. According to Lang & Schwarz, the Global X Copper Miners (IE0003Z9E2Y3) is a popular buy
The rather falling gas prices are also used for ETC commitments: while long products such as the WisdomTree Natural Gas 3x Daily Leveraged price (IE00BLRPRG98) tend to sell, Wörndl mainly notes the purchases of the short counterpart (IE00B76BRD76 ).
Crypto ETP: small business
The crypto market remains calm with low turnover. “The volume is not comparable with the beginning of the year”, summarizes Wörndl. At least in the big cryptocurrency there is movement. Bitcoin, the world’s largest cryptocurrency, has lost around two-thirds of its value since the start of the year, as has Ethereum, the market’s No. 2.
Bonds: concerns about continued central bank restrictions
Things are also calming down in the bond market, although concerns about an overly restrictive stance by the FED and the ECB continue to weigh on markets. “Interestingly, the performance of US dollar bonds was significantly lower than that of
Euro papers are coming back, even though they caught up yesterday,” says Commerzbank’s Michael Ott, describing what happened. This means that the pent-up demand for euro paper in terms of interest rates is obviously having an effect, while the market may not really believe in the restrictive words of the US central bank and is still counting on the overshoot of the peak of the interest rate. “As a rule, central banks are also slower than this
market, so that in the end the market is right”, summarizes Ott.
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United States – ESG |
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raw materials |
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by: Antje Erhard, December 20, 2022, © Deutsche Börse AG
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