{"id":53734,"date":"2016-06-29T03:10:00","date_gmt":"2016-06-29T01:10:00","guid":{"rendered":"http:\/\/beta.next-finance.net\/strategie\/brexit-dominated-etp-flows-last-friday\/"},"modified":"2016-06-29T03:10:00","modified_gmt":"2016-06-29T01:10:00","slug":"brexit-dominated-etp-flows-last-friday","status":"publish","type":"post","link":"http:\/\/beta.next-finance.net\/en\/strategie\/brexit-dominated-etp-flows-last-friday\/","title":{"rendered":"Brexit dominated ETP flows last Friday"},"content":{"rendered":"<p>Total outflows into Gold ETPs for the week totalled US$62m highlighting the relief<br \/>\nrally at the beginning of the week leading to Gold outflows. <strong>However, after the<br \/>\nshock Brexit vote investors reversed their positions and purchased safe<br \/>\nhaven assets with inflows into gold ETPs totalling US$201m for Friday<br \/>\nalone.<\/strong><\/p>\n<p>The gold price gained 4.2% on Friday to around US$1,316 per troy ounce, after Britain<br \/>\ndelivered a shock vote to leave the European Union, sending investors scurrying for<br \/>\nprotection in bullion and other assets perceived as lower risk. Other precious metals<br \/>\nsuch as silver and platinum gained 4.3% and 2.5%, respectively on Friday. Prior to the<br \/>\nvote, precious metals only received a total US$47mn as investors saw the odds for a<br \/>\nBrexit as low. We believe that risk-off sentiment will persist until a clear withdrawal<br \/>\nplan from the European Union is set out.<\/p>\n<p><strong>Long crude oil saw outflows of US$7.1mn.<\/strong> Oil prices settled 5% lower after<br \/>\nBritain&#8217;s vote to leave the European Union spurred massive risk aversion. The losses<br \/>\nwere much smaller for the week as a whole, with Brent down 1.5%and U.S. crude 0.7%.<br \/>\nInvestors paid little heed to data on Friday showing the US oil rig count fell by seven<br \/>\nlast week, the first weekly reduction in 4 weeks. We see the Brent fair value of US$55<br \/>\nper barrel at the year-end 2016, reflecting the 75th percentile of the crude production<br \/>\ncost-curve, where supply-demand responses occur.<\/p>\n<p><strong>Last Friday Short GBP ETPs saw about US$180mn after Britain&#8217;s vote to<br \/>\nleave the European Union.<\/strong> The British Pound fell 8.05% against US dollar to 1.368<br \/>\nwhile it fell 5.75% against Euro to 1.232 on Friday. Investors cut short GBP ETP<br \/>\npositions at fastest rate in nearly two years. During the week, investors withdrew<br \/>\nUS$25.4mn from short GBP ETPs. Meanwhile, the EU referendum decision also<br \/>\nprompted USD outflows, as the chances for a US rate hike declined. Outflows from<br \/>\nLong US Dollar ETPs totalled US$25.2mn, the largest in 12 months.<\/p>\n<p><strong>Key events to watch this week.<\/strong> Investors will be waiting for the \u201cLeave\u201d campaign<br \/>\nto provide a framework on UK withdrawal from the EU. On the other hand, the debate<br \/>\nover the \u201cBrexit\u201d vote and the possibility of a second referendum could continue to fuel<br \/>\nmarket uncertainty. Also this week, the Eurozone countries will publish consumer<br \/>\nconfidence index as well as a series of CPI inflation data.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Investors frantically purchase Gold ETPs after Britain delivered a shock vote to leave the European Union with inflows of US$201m on Friday alone. US$180mn redemption in Short GBP ETPs following the vote. Long crude oil ETPs experienced limited outflows, whilst oil prices settled 5% lower on Friday.<\/p>\n","protected":false},"author":1,"featured_media":53732,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1483],"tags":[1655,1718,1744,1651,1437,1807,1746,2021,2103,2068],"_links":{"self":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/posts\/53734"}],"collection":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/comments?post=53734"}],"version-history":[{"count":0,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/posts\/53734\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/media\/53732"}],"wp:attachment":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/media?parent=53734"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/categories?post=53734"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/tags?post=53734"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}