After a better than expected Q2 GDP print pre-market, risk assets had another strong morning, and then rallied further in the afternoon on reports of a bond purchase program from the ECB and talks between ECB and Bundesbank presidents. While this chatter once again led European country ETFs EWP-Spain and EWI-Italy higher, another notable country ETF, EWY-South Korea, also had a strong day, up 4%, after markets reacted positively to Samsung’s Q2 earnings. Samsung makes up just over 22% of EWY. Oil ETFs also benefited from the potential for more European stimulus with XES-Oil and Gas Services up 3.4% on 10x Average Daily Volume.
On the desk we saw notable two way volume in India ETFs PIN and EPI. We were active in a number of other International ETFs, with sellers of EWM-Malaysia and EWH-Hong Kong, and buyers of ERUS-Russia, MCHI-China, GXG-Columbia, EDIV-Emerging Markets Dividend. HYG-High Yield Corporate Bonds once again saw two way flow. Thanks for reading this week, enjoy the weekend and the Olympics.
Eric Mustin (filling in for Chris Hempstead)