Weekly Market Monitor – Week Ending 31 March 2023

  • Crude oil (OOO) was a standout performer last week as Russia declared it’s close to fully implementing a 500,000-barrels daily output cut that will last until the end of June. The announcement also came in the lead up to OPEC+’s meeting, whose decision has now materialised as a further 1,000,000 barrel cut of daily output. Crude has since rocketed 25% from its mid-March 15-month lows.
  • Geared equity funds (GGUS, GEAR, LNAS) also outperformed as global stock markets rallied. Traders are betting on a more dovish Fed after the multiple major bank collapses of the week prior. Under the same reasoning, short equity funds (BEAR, BBOZ, SNAS, BBUS), which bet against the market, were the poorest performers of the week.
  • There were $198.5 million in reported industry inflows last week. AUD income ETFs (AAA, FLOT, SUBD, USTB, CRED, AGVT) accounted for a large majority of the flows, suggesting that investors feel current yields offer an attractive proposition versus equities.
  • There were $56.9 million in outflows, meaning the industry saw yet another week of net inflows. Global X Physical Gold (GOLD) led the pack as investors took profits. Gold continues to sit near all-time Australian Dollar highs.
  • Vanilla index trackers (VAS, IOZ, A200, STW, VGS) dominated trading volumes as usual.

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