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January 2007

1.1.2007 - Commodities outlook
Believe it or not, 2006 was a miserable year for many a commodities speculator. Hedge fund Amaranth springs to mind but those employing more mainstream strategies suffered too. The Goldman Sachs Commodities Index - the biggest of its kind - fell 15 per cent last year. The main reason is its high weighting to oil, where changes in the shape of the futures curve have caused the yield earned by rolling contracts to turn negative.

2.1.2007 - Gold sees biggest annual gain since 2002
Gold had its biggest annual gain since 2002 as declines in the dollar spurred demand for the metal as an alternative investment. The metal surged 23% this year and climbed to a 26-year high of USD732 an ounce on May 12 on investment demand. The dollar fell 8.1% against a basket of six currencies such as the euro and yen in 2006, the fourth decline in five years.

2.1.2007 - Metals end 2006 with huge gains
Industrial metals finished the year with huge gains, some more than doubling, as tight supply continued to attract investors to the market. Metals outperformed the FTSEurofirst 300 share index, which was up around 16 per cent on the year, and the MSCI All-Country World Index, up around 19 per cent. Three-months copper futures on the London Metal Exchange, the contract that has proved most popular among speculators in the financial markets, ended 2006 at USD6,330 per tonne, up 44 percent from its closing price on the last trading day of 2005. The strongest performer was nickel, which ended the year up 140 percent.

2.1.2007 - Crude oil rises as hedge funds buy contracts at start of year
Crude oil rose as some analysts and traders speculated that hedge funds and other large investors are buying contracts at the start of 2007. Crude oil for February delivery rose as much as 45 cents, or 0.7 per cent, to USD61.50 a barrel in after-hours electronic trading on the New York Mercantile Exchange.

3.1.2007 - Derivatives poised for upsurge
A consensus is emerging among pension fund managers and their sponsors that derivatives instruments not only provide pension funds with greater risk protection but also enhance performance and are better at matching liabilities. Accordingly, many industry watchers expect their use to surge in 2007. The primary appeal of derivatives is the increased efficiency in a portfolio while also reducing risk in ways not possible in cash markets, said Paul Trickett, European head of investment consulting at Watson Wyatt.

4.1.2007 - Copper, commodity sell-off points to growth slowdown
A sell-off in commodities - from copper to crude oil - over the past few sessions is telling some veteran market watchers that a slowdown in economic growth, likely one of considerable magnitude, is already underway.

4.1.2007 - Absolute return funds seen growing in 2007
Portfolios that target positive returns in all market conditions are set to grow in popularity in 2007, funds industry commentators say, although some believe the trend could end in grief. After an equity bear market at the start of this decade, and with concerns that the current bull market has run its course, products that aim for smoother returns less correlated to stock market performance are expected to gain further inflows this year.

4.1.2007 - Dollar grinds higher against euro and sterling
The dollar extended its rally into a second day on Thurday as traders cut back short positions betting on a fall in the currency.

5.1.2007 - Metal exchange aims to double trading volume within five years
Martin Abbott, chief executive of the London Metal Exchange, has unveiled a growth strategy for the exchange, dubbed '2 by 2', which aims to double its trading volume within the next three to five years.

6.1.2007 - Keeping the ETF boom alive
Friday saw Deutsche Bank roll out not one, but seven commodity sector exchange-traded funds (ETFs), demonstrating that the bank and its partner PowerShares Capital Management believe that ETFs and commodities will remain hot in 2007.

9.1.2006 - CBOT To Launch Futures Contract Based on Dow Jones U.S. Real Estate Index
The Chicago Board of Trade (CBOT) today announced plans to launch a new stock index futures contract based on the Dow Jones U.S. Real Estate Index.

10.1.2006 - ETF listings double on American Stock Exchange
The American Stock Exchange saw the listing of 92 new exchange-traded funds in 2006, doubling the number of listings from 2005 and continuing its dominance of the US EFT sector, and it listed more than 100 structured products for the fifth consecutive year.

11.1.2007 - Is an era ending for oil and gold?
Oil and gold start the new year under pressure. Is an era ending?

11.1.2007 - Nasdaq says LSE offer deadline extended
Nasdaq Stock Market Inc said on Thursday it had extended the deadline for shareholders to accept its 2.7 billion pound ($5.22 billion) bid for the London Stock Exchange to Jan 26.

11.1.2007 - Tokyo exchange close to NYSE alliance
The Tokyo Stock Exchange could announce an alliance with the New York Stock Exchange as early as this month, the head of the TSE said.

12.1.2007 - Oil recovers eyeing Opec move
Oil prices rebounded, stabilising after recent weakness while base metals traded in consolidation mode.

13.1.2007 - Oil - How Low Can It Go and Ramifications for the Currency Market
Over the past few weeks, the oil market has been very active. Since hitting an all time high of $78.40 back in July, crude prices have plummeted to 19 ...

13.1.2007 - Dollar Sputters On Retail Sales Event Risk Let Down
Forex traders were setting up for the most fundamental active session for the dollar this week. After the huge moves seen earlier in the week with a notable ...

14.1.2007 - Canadian dollar falls prey to hedge funds as crude, copper drop
Traders are making the biggest bets ever against the Canadian dollar. Hedge funds and other large speculators started the year with a record CAD8.5 billion (USD7.2 billion) wagered that the currency will fall against the US dollar. Canada's dollar tumbled to a 13-month low last week amid slower economic growth and a 33 per cent slide in crude oil since July.

14.1.2007 - LSE in discussions with investor Heyman: report
London Stock Exchange is in talks about its future with its second-largest shareholder, U.S. investor Samuel Heyman, the Observer newspaper reported on Sunday.

14.1.2007 - Euro displaces dollar in bond markets
The single currency has become the world's pre-eminent currency in international bond markets, outstripping the dollar-denominated market for the second year in a row.

15.1.2007 - iBoxx Euro High Yield Bond Indices launched - a new index family
International Index Company, the leading independent provider of bond and credit derivative indices, has launched the iBoxx Euro High Yield Index family.

15.1.2007 - Gold price may equal all-time high of USD850 on weak dollar
The price of gold could equal its all-time high of USD850 an ounce, reached in January 1980, by spiking to that level this year on a weakening dollar as well as declining output. However, Ross Norman, director of UK-based TheBullionDesk.com said, last week that gains in the gold price this year were likely to be modest relative the previous five years - although a weakening dollar, stagnant production, buoyant oil prices, geopolitical tension and the spectre of inflation might provide a positive backdrop. The gold price could also be boosted by demand as well as more investment products, such as exchange traded funds (ETFs) and bullion-linked indices.

16.1.2007 - All eyes focus on aluminium
All eyes are on the aluminium market. Commodity traders are bracing for volatility as they wait to see to how one party that has built a massive position in the market will act. Settlement day on the LME may provide answers.

16.1.2007 - Gold's prospects for 2007
Gold is the precious metal that analysts are most positive about for this year, according to a poll conducted by Reuters. Silver and palladium prices are also expected to rise but opinions on platinum are varied.

16.1.2007 - First options on property mark new milestone
An esoteric but important milestone has been reached in the fledgling world of property derivatives with the sale of the first real estate "options".

17.1.2007 - Tips hold up amid oil price falls
Falling oil prices have failed to damp inflation expectations in the Treasury market, suggesting traders are unsure of the implications of cheaper energy.

17.1.2006 - New Fed fear: Lower oil
The drop in oil prices to the lowest level in 20 months has boosted some investors' hopes that a key ingredient of inflation is out the door, which has helped open the back door for lower interest rates.

17.1.2007 - Gold ETF has brought liquidity to market
Since the beginning of 2006, gold in the Exchange Traded Gold stable of funds, notably StreetTRACKS Gold Shares and Lyxor Gold Bullion Securities, has increased from around 11.6 million ounces worth some $6 billion to almost 18 million ounces worth $11 billion. The impressive factor last year was the generally unfazed behaviour of Exchange Traded Gold investors when gold experienced sharp setbacks. In the face of large sales of gold futures and options there were minimal changes in Exchange Traded Gold holdings, illustrating that ETF gold investors are medium and long term holders of the metal.

18.1.2007 - LSE fortifies Nasdaq defense with share buyback
The London Stock Exchange said it would return as much as 250 million pounds ($492 million) to investors as it seeks to persuade them to reject a hostile bid from U.S. rival Nasdaq Stock Markets.

18.1.2007 - Parker Global launches investible forex index
Parker Global Strategies, which has tracked foreign exchange managers since January 1986 with the Parker FX Index, has launched its first investible foreign exchange index, PGS FX Alpha Edge.

18.1.2007 - Mutual-fund and ETF performance, analysis and more
The developing markets of China, India, Brazil and many other rapidly growing countries have become more acceptable investments in a diversified portfolio, and accordingly are increasingly seen as less risky.

19.1.2007 - Dollar flat vs. major currencies; consumer sentiment improves
The dollar traded little changed against other major currencies Friday, reversing early gains


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