Serenity, but no reason for optimism

Eurozone yes – Europe no – Emerging Markets welcome

In contrast, European stock indices are in little demand from Société Générale’s customers. “Here, however, there is a differentiated picture within Europe,” explains Mohr. Eurozone equities (DE0005933956) are more likely to be bought, European stock trackers, which also include Great Britain, are not in demand. This leads to outflows from iShares MSCI Europe (Acc) (IE00B4K48X80).

At Lang & Schwarz, investments are primarily made in US technology stocks, but also in the S&P 500 and the Dow Jones. “Here we have demand on both sides, with buying and selling.” Accordingly, there is high demand for the Xtrackers S&P 500 2x Inverse Daily Swap (< LU0411078636>) and for the Leveraged MSCI USA Daily from Amundi (FR0010755611). The first ETN profits from falling DAX stocks, the second from rising ones, both with double leverage.

Wörndl sees a clear dominance of the buy side in emerging market trackers. “Many buyers are taking advantage of the price weakness.” This is reflected in the iShares Core MSCI EM IMI (IE00BKM4GZ66).

Sectors: sales of health, technology, finance, energy

While the sector ETFs with technology stocks were the most traded at Société Générale last week, the healthcare sector now tops the list of favourites. However, Mohr reports that the sell lists in the order books are longer than the buy lists. For example, iShares S&P 500 Health Care Sector (Acc) (IE00B43HR379) sold.

According to Mohr, the sell side also predominates in technology stocks, number two in trading with sector ETFs, followed by financial stocks and the energy sector, where sales are also shaping events.

Fixed income: government bonds instead of corporate stocks

Italy and Great Britain are in focus on the bond market, but with different effects. “The electoral victory of the legal alliance in Italy only led to moderate widening of the spreads of Italian government bonds compared to the corresponding federal bonds,” reports Burkhard Fehling from Commerzbank. However, the tax relief package announced by the UK government had pushed the pound against the US dollar to its lowest level since 1985, at US$1.035 per pound. Yields on UK government bonds have risen sharply.

Demand for bond ETFs at Société Générale is also slightly higher. “We are currently noticing more sales here than in the previous week,” reports Mohr. Demand for US TIPS (IE00BDZVH966), inflation-linked US Treasuries and short-dated European government securities (FR0010754200). Long-dated US government bonds (), on the other hand, are being sold. Mohr records little sales in a weekly comparison with company papers.

Wörndl’s customers trade a floater (IE00BF5GB717), i.e. a debt instrument with a variable interest rate, briskly in both directions.

Crypto ETPs: Bitcoin and Ripple purchases

The order books of the cryptocurrencies that Wörndle manages show increasing demand. “There is a lot of turnover, especially in Bitcoin and Ripple trackers.” He notes corresponding buy orders for the 21Shares Bitcoin ETP (), which has risen by a good 12 percent over the week. Ripple is primarily funded with the 21Shares Ripple ETP (CH0454664043) traded.

by: Antje Erhard, September 27, 2022, © Deutsche Börse AG