Mostly Israel & Canada Today

Fri, 2017/11/03 - 2:26pm | Your editor
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The hot trend among US investors reported by EPFR, a Cambridge (MA) tracker of fund flows, has been a $140 bn plus move into global equity funds. The focus has been on developed rather than emerging markets with record-breaking moves into Japan. Emerging market funds, particularly for Brazil and Argentina, hit new highs in recent months. A recent favorite has been Vietnam. And money has flowed to bond funds invested abroad as well, but not as broadly, with most ot he money going into euro-denominated short and medium term corporate bonds.

Good job gains and a lower unemployment rate at 4.1% perversely increased the likelihood that there will be an interest rate hike as expected next month. The unemployment rate was not only lowered by people finding jobs, but also because many stopped looking, as the labor force participation rate fell to 62.7% from 63.1%. This means that despite revisions turning Sept. figures from job losses to gains, and boosting August levels, the report was counterd as a 'miss' by the market, according to Stephen Alpher news editor at seekingalpha.com. However the official unemployment rate fell to the lowest level since the 21st century began.

This took the dollar down. The result was that all foreign stocks from well-run countries gained from the stronger pound, loony, A$, euro, Swissie, and Yen.

 

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