ETF Express: Week Ending 11 August 2023

ETF Express is Global X’s weekly coverage of the latest ETF Market Moves, Thematic Spotlight and Commodity Calls.

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• Uranium ETFs (ATOM, URNM) outperformed last week as Niger underwent political instability in the form of a coup d’état.¹ Niger is Africa’s second largest uranium producer, responsible for roughly 4% of the world’s supply.²
• Risk-on tech ETFs (DRIV, EDOC, HGEN, LNAS, RBTZ) fell across the board after higher-than-expected wholesale inflation data (PPI) caused treasury yields to rise.³ While most analysts still predict the Fed will pause rates in September, traders are nonetheless pricing in a higher possibility.⁴
• There were $591.9 million in reported inflows for the week, and only $77.3 million in outflows, marking a large week of net inflows for the Australian ETF industry.

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Matildas’ Dream Run Spurs Australian TV Boom

Australia & Media

The Matildas are carrying more than just the hopes of Australian football fans, as their FIFA World Cup campaign has drummed up competition among Australian TV and streaming labels. Their semi-finals match up against England in the women’s FIFA World Cup pulled more than 11 million viewers, by far the most viewed television event in Australian history.⁵ A further 975,000 viewers also streamed the match live on Seven’s 7plus platform, making it the largest streaming event ever seen in Australia.⁶

For this world cup series, Optus Sports signed on with FIFA for roughly $20 million for the rights to be the primary carrier. Seven Group then sub-licensed from Optus to broadcast 15 of the 64 total matches as free-to-view for about $4 million.⁷ However, with viewership numbers outperforming all expectations, streaming and TV platforms are all on the lookout for the next big deal. Currently, Paramount is the broadcast partner for the A-League, Optus has dibs on the English Premier League and the Women’s World Cup, and SBS was responsible for the Men’s World Cup in 2022.⁸

The next broadcast rights cycle, which starts in 2025, includes both the 2026 men’s FIFA World Cup, the 2027 Women’s World Cup, as well as the 2026 Women’s Asia Cup (which football Australia is bidding to host).⁹ FIFA executives in Australia are slated to brief the country’s leading networks this week on upcoming contracts, with further discussions in the coming months.¹⁰ Expectations are high as the recent boost in ratings, particularly from Matilda’s star performance, will likely make prospective sports deals much more valuable.

Gain exposure to the Australian Media and Entertainment sector with OZXX.

 

Gold

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Bullish

• US inflation numbers came in at 3.2% in line with economist expectations and down significantly from 9% last year.¹¹ With the likelihood of a September rate pause priced at 89%, non-yielding assets like gold may receive some relief.¹²

Bearish

• US Mint and Perth Mint report significant drops in gold demand. US Mint saw bullion demand fall 36% from July 2022, and Perth Mint sales were down 41% over the same period.¹³

Explore physical gold with GOLD.

Uranium

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Bullish

• Niger, Africa’s second largest uranium producer, fell into political instability as General Abdourahmane Tchiani declared himself the new leader of the country after seizing elected president Mohamed Bazoum.¹⁴ The ongoing coup d’état, should it be met with pushback, threatens just over 4% of the world’s uranium production tightening supply.¹⁵
•  China approves US$17 billion project for six new nuclear reactors to be built in Shandong, Fujian, and Liaoning.¹⁶ China accounts for 23 of the 55 nuclear reactors under construction globally.¹⁷

Bearish

• Continued weakness in economic signals from China could possibly impact green infrastructure spending as it is the largest contributor to the global nuclear pipeline.

Explore uranium with ATOM.

Crude Oil

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Bullish

• Escalated conflict between Russia and Ukraine in the Black Sea have boosted oil prices as Russian oil shipments come under fire, driving up insurance costs and supply fears. ¹⁸

Bearish

• China’s consumer sectors fall into deflation and factory-gate prices (price of goods as quoted by manufacturer) extended declines. The nation has struggled to revive demand, as economic growth continues to slow putting pressure on commodity prices.¹⁹

Explore crude oil and commodities with BCOM.

 

Forecasts are not guaranteed, and undue reliance should not be placed on them. This information is based on views held by Global X or referenced sources as at 11th August 2023.