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Monday, April 15, 3:32 PM
In recovery mode following Vanguard's decision to swap out MSCI indexes for FTSE in several of its ETFs last October, Msci, Inc. (MSCI -3%) takes another blow as ProShares does the same with two of its European funds, UPV and EPV. Vanguard made its move to save on indexing costs - including its popular Europe ETF (VGK) - but ProShares hasn't yet commented on its reasoning.
Friday, March 1, 4:25 AM
Eurozone February Manufacturing PMI unchanged from January at 47.9 (flash 47.8) as Germany stabilizes but with all other countries except Ireland contracting. "The combination of a revival in export orders and resilient domestic demand has helped propel Germany’s growth so far this year, while deteriorating domestic demand is holding back the economies of France, Italy and Spain," Markit says. (PR)
Comment![Global & FX, Top Stories]
Saturday, December 22, 2012, 11:00 AM
"Europe's for sale," declares the Barron's cover story arguing the Continent's stocks (VGK) remain cheap even after a 25% run since June 1. The yield on the Stoxx 600 is 3.8% vs. 2.2% on the S&P 500, and while the political crisis makes the headlines, Europe's firms have been busily cleaning up balance sheets, reducing capex, and building up cash balances.
14 Comments[Global & FX]
Monday, December 3, 2012, 12:47 PM
Among JPMorgan's (JPM) 9 market themes for 2013 is its belief European equities will outperform the U.S. as fiscal issues which have dogged the Continent for so long now move across the pond. It's more continuation play than contrarian play as Europe (VGK) has bested the U.S. (SPY) by nearly 300 basis points thus far in 2012.
Comment![Global & FX]
Monday, August 20, 2012, 9:04 PM
More on the ECB: Mario Draghi appears to have won over at least one Bundesbank member as Jorg Asmussen tells a German newspaper high peripheral bond yields reflect exchange rate risk, thus "our monetary policy (is) achieved only incompletely." It's crucial wording, suggesting he's okay with ECB bond purchases as long as they're couched in saving EMU, not financing Spanish and Italian governments. "We are working on (a) new program and will deal with it (at the next policy meeting)."
10 Comments[Global & FX]
Monday, August 20, 2012, 8:39 AM
Goldman makes a big call on an EU comeback, recommending going long a basket of European firms with high domestic sales exposure against a short of companies with high U.S. exposure. Jeff Gundlach's May recommendation of long Spain vs. short U.S. is working, EWP outperforming SPY by 400 bps since.
3 Comments[Global & FX, Quick Ideas]
Monday, August 20, 2012, 6:41 AM
The Bundesbank warns (in its monthly report) moves to share "solvency risks" in the eurozone should be decided by governments, not the ECB. The comments follow speculation the ECB is considering intervention to cap spreads between peripheral and German bond yields by buying unlimited amounts of government debt. It's a plan Germany's finance ministry denies any knowledge of but says would be "very problematic."
Comment![Global & FX, Top Stories]
Sunday, August 19, 2012, 6:52 PM
The ECB is considering capping peripheral bond yields by stepping in to buy the debt when its spread to German paper rises above a certain threshold, reports Der Spiegel. Draghi has complained that monetary policy transmission is broken, i.e., the ECB eases yet financial conditions tighten further in the periphery - this gives him his opening to buy government debt. A decision could come at the bank's September policy meeting.
17 Comments[Global & FX]
Monday, August 13, 2012, 11:50 AM
Hedge funds capitulate, with data suggesting they are covering shorts on European stocks at the fastest rate since the epic bottom of early 2009. Likely priced in on the bear side are faltering economies and shrinking corporate profits. Maybe priced in on the bull side are further supportive official actions.
3 Comments[Global & FX]
Thursday, August 2, 2012, 6:54 AM
Giving risk assets a boost is a report in a German paper suggesting the ECB and the EFSF are planning to coordinate purchases of Spanish and Italian debt. Despite German opposition, Draghi has garnered a majority in favor of bond purchases on the ECB governing council, but the plan's introduction may wait until September (not today's meeting).
2 Comments[Global & FX, Top Stories]
Wednesday, August 1, 2012, 4:04 AM
Eurozone manufacturing PMI comes in at a final 44.0 for July, vs. the flash estimate of 44.1 and down from 45.1 in June. "Output fell at the fastest rate since mid-2009... Manufacturing therefore looks to be on course to act as a major drag on economic growth in the third quarter, as the Eurozone faces a deepening slide back into recession." (PR .pdf)
Comment![Breaking News, Global & FX, Top Stories]
Monday, July 30, 2012, 3:15 PM
Rallying big on statements from an A-list of EU honchos that will be difficult to actually implement, world stock markets may be set up for major disappointment this week. The EFSF can't buy Spanish debt until Spain requests a bailout, the ESM isn't up an running yet, and the ECB's SMP remains dormant. Will a rate cut and another loosening of collateral requirements do the trick? Hardly.
5 Comments[Global & FX]
Monday, July 30, 2012, 7:59 AM
It better be more than a quarter point cut on Thursday, writes Ambrose Evans-Pritchard of the ECB policy meeting after Mario Draghi "promised the moon." European markets are up 8% or more since Draghi's comments on Thursday. A failure to deliver on his pledge could be a disaster.
5 Comments[Global & FX]
Tuesday, July 24, 2012, 4:04 AM
Eurozone flash manufacturing PMI dips to 44.1 in July vs. 45.1 in June, touching a 37-month low. Services PMI at a four-month high of 47.6 vs. 47.1 in June. Employment fell for the seventh month in a row and at the fastest rate in 2.5 years. The downturn shows no signs of letting up and "is consistent with GDP falling at a quarterly rate of around 0.6%, which is similar to the rate of decline we expect to see for the second quarter." (PR)
3 Comments[Global & FX, Breaking News, Top Stories]