Pan-Asia Index Rebalances/ Events/ Delta One, Periscope Analytics

Brian Freitas

Pan-Asia Index Rebalances/ Events/ Delta One

Periscope Analytics

Periscope Analytics focuses on event-driven trades across Asia Pacific and provides comprehensive, timely and systematic coverage of index changes to major Asia Pacific indices in a structured manner.

The analysis includes forecasted inclusions and exclusions to all major Asian indices that have significant amount of tracking assets, including estimates of passive buy/sell flow on the stocks. The service also provides commentary and impact of market consultations, ground rule changes, and other events (IPOs, spin-offs, M&A) that could lead to index changes and passive flow.

Periscope Analytics works with multi-strategy hedge funds, proprietary trading firms, stat arb trading groups and long-only investors that invest and trade in the Asia Pacific region with the data being used to trade index rebalances, avoid pre-positioning and passive flow, and to time entry into and exit from stocks.

Event-Driven Trades Across Asia Pacific

Event-Driven

<ul>
<li>There were a few rebalance announcements in the last week and the <a href="https://www.smartkarma.com/entities/sse-science-and-technology-innovation-board-50-index" target="_blank" data-smartkarma-citation="entities:29279:1" rel="noopener">SSE STAR50 (STAR50 INDEX)</a> and STAR100 Index rebalances were implemented at the close on Friday.</li>
<li>There are a lot of rebalances that will be implemented at the close on the coming Thursday and Friday.</li>
<li>Another big week of inflows for onshore China ETFs with Central Huijin likely behind the big flows to ETFs tracking the <a href="https://www.smartkarma.com/entities/shanghai-shenzhen-csi-300-inde" target="_blank" data-smartkarma-citation="entities:22906:1" rel="noopener">Shanghai Shenzhen CSI 300 Inde (SHSZ300 INDEX)</a>. </li>
</ul>


There were a few rebalance announcements in the last week and the SSE STAR50 (STAR50 INDEX) and STAR100 Index rebalances were implemented at the close on Friday.
There are a lot of rebalances that will be implemented at the close on the coming Thursday and Friday.
Another big week of inflows for onshore China ETFs with Central Huijin likely behind the big flows to ETFs tracking the Shanghai Shenzhen CSI 300 Inde (SHSZ300 INDEX). 


Index Rebalance & ETF Flow Recap: NKY, ASX, CSI300, A50, STTF, LowVol30, Value Up

Global Multi-Asset Investment Strategist, True Insights

Jeroen Blokland

Global Multi-Asset Investment Strategist

Build Well-Diversified Multi-Asset Portfolios

True Insights

Our research helps investors build well-diversified multi-asset portfolios and profit from market developments. In addition, our unique and proven Macro – Sentiment – Valuation (MSV) investment framework ensures a consistent flow of new investment opportunities. Together with our market views, these opportunities will be reflected in our live ETF-based Global Multi-Asset Portfolios.

Cross Asset Strategy

<ul>
<li>Bitcoin AND gold made new all-time highs, which is by no means a coincidence. Gold’s market cap is now over USD 16 trillion, which is important for two reasons.</li>
<li>The Fed has multiple reasons to cut rates even though GDP growth is resilient, including bank defaults, the commercial real estate crisis, and evaporating liquidity.</li>
<li>The ECB should cut rates, too; it runs the risk of getting in on the action too late.</li>
</ul>


Bitcoin AND gold made new all-time highs, which is by no means a coincidence. Gold’s market cap is now over USD 16 trillion, which is important for two reasons.
The Fed has multiple reasons to cut rates even though GDP growth is resilient, including bank defaults, the commercial real estate crisis, and evaporating liquidity.
The ECB should cut rates, too; it runs the risk of getting in on the action too late.


The Weekly Market Monitor – These Two All-Time Highs Are No Coincidence!

Technical Analyst, Vermilion Research

Joe Jasper

Technical Analyst

Technical and Quantitative Research

Vermilion Research

Vermilion’s objective is to deliver timely, actionable, and unique technical research to professional investors through the application of our various technical indicators.

Our research strategists seek to highlight securities which we believe are at major inflection points, based on our various technical and quantitative indicators, and offer asymmetric risk/return profiles. Our unique research methodology, centered on relative strength, enables our strategists to deliver superior investment recommendations.

Our process begins by organizing the universe of actively traded stocks into discrete sectors, then into industry groups. We then apply our technical and quantitative tools to identify developing price trends. Once attractive trends are identified within a selected sector or group, we screen for individual stocks which we believe offer the best risk/reward profile. We provide a historical perspective that often reveals, through our long-term charts, how price patterns often repeat themselves over time.

Technical Analysis

<ul>
<li>The number of risk-on signals continues to grow, while risk-off signals remain virtually non-existent. We will be sure to point it out when this dynamic starts to change</li>
<li>In the meantime, we want to continue riding this bull market higher, and our bullish outlook on the S&amp;P 500, Russell 2000, and Nasdaq 100 (since early-November 2023) remains intact.</li>
<li>Gold is breaking out of a 3.5-year base to all-time closing highs -- buy. Silver is breaking out above a 3-month base at $23.50. Fueled by toppy DXY and rates</li>
</ul>


The number of risk-on signals continues to grow, while risk-off signals remain virtually non-existent. We will be sure to point it out when this dynamic starts to change
In the meantime, we want to continue riding this bull market higher, and our bullish outlook on the S&amp;P 500, Russell 2000, and Nasdaq 100 (since early-November 2023) remains intact.
Gold is breaking out of a 3.5-year base to all-time closing highs -- buy. Silver is breaking out above a 3-month base at $23.50. Fueled by toppy DXY and rates


Gold Breaking Out Above 3.5-Year Resistance as the U.S. Dollar (DXY) And Treasury Yields Roll Over

Head of Research and Global Chief Strategist, Steno Research

Andreas Steno

Head of Research and Global Chief Strategist

Macro and Geopolitical Research House

Steno Research

Steno Research is a new macro and geopolitical research house. We are based out of Copenhagen, Denmark, but have an international team and a strong network of sources and partners around the world. The team is lead by Andreas Steno, previous global head of strategy at Nordea Bank, and Mikkel Rosenvold, former chief consultant in the Danish Ministry of Finance.

Macroeconomics

<ul><li>Hello everyone, and welcome back to our weekly positioning watch! Equity markets continue their drift higher for yet another week, and it seems safe to say that markets are now more concerned about liquidity/growth than rates to reiterate ourselves, as equity markets have not attributed the U-turn in rates expectations any value whatsoever.</li><li>As the growth and liquidity outlook still looks decent for the weeks/months ahead, we keep our long risk asset bias.</li><li>The rates outlook looks to have a bigger impact in FX and especially the carry-heavy side of this asset class, and with the market likely going to up-hawk expectations even further if inflation picks up momentum, it could be time for a revival of the USD – FX volatility has at least started to pick up a bit of momentum (bullish USD).</li></ul>

Hello everyone, and welcome back to our weekly positioning watch! Equity markets continue their drift higher for yet another week, and it seems safe to say that markets are now more concerned about liquidity/growth than rates to reiterate ourselves, as equity markets have not attributed the U-turn in rates expectations any value whatsoever.As the growth and liquidity outlook still looks decent for the weeks/months ahead, we keep our long risk asset bias.The rates outlook looks to have a bigger impact in FX and especially the carry-heavy side of this asset class, and with the market likely going to up-hawk expectations even further if inflation picks up momentum, it could be time for a revival of the USD – FX volatility has at least started to pick up a bit of momentum (bullish USD).

Positioning Watch – Are the unpopular bets back in town?

Research from Water Tower Research, Water Tower Research

Water Tower Research

Research from Water Tower Research

Water Tower Research is a leading equity research firm that provides research on micro, small and mid cap companies.

Water Tower Research was founded by Wall Street veterans after witnessing a fundamental shift in the investment research industry with the result being a declining knowledge base among investors, a lack of awareness and a shrinking pool of fundamental research being conducted on companies across the small-cap and micro-cap spectrum. The same issues are now increasingly occurring in the mid-cap space. This sea change within the investment community is impacting not only the companies themselves but also current shareholders and potential investors. With significantly less active sell-side sponsorship by Wall Street, a substantial information gap has developed between companies and various constituents in the financial community. The net result is fewer channels for insight and information to flow between companies and investors.

Equity Research Firm

Thematic (Sector/Industry)

<ul><li>The WTR Sustainable Index was up by 4.3% W/W versus the S&amp;P 500 Index (up 0.9%), the Russell 2000 Index (up 3.0%), and the Nasdaq Index (up 2.0%).</li><li>Energy Technology (12.7% of the index) was up by 3.9%, while Industrial Climate and Ag Technology (53.5% of the index) was up by 1.4%, ClimateTech Mining was down 0.7% and Advanced Transportation Solutions (27.9% of index) was up 11.2%.</li><li>Top 10 Performers: ENG, AMY, TPCS, HYLN, VIEW, XOS, AMYZF, <span style="font-size: var(--content-font-size);">SMR, EVA, PMET,</span></li></ul>

The WTR Sustainable Index was up by 4.3% W/W versus the S&amp;P 500 Index (up 0.9%), the Russell 2000 Index (up 3.0%), and the Nasdaq Index (up 2.0%).Energy Technology (12.7% of the index) was up by 3.9%, while Industrial Climate and Ag Technology (53.5% of the index) was up by 1.4%, ClimateTech Mining was down 0.7% and Advanced Transportation Solutions (27.9% of index) was up 11.2%.Top 10 Performers: ENG, AMY, TPCS, HYLN, VIEW, XOS, AMYZF, SMR, EVA, PMET,

Weekly Sustainable Investing Surveyor - Week Ended March 1, 2024

United States

The S&P 500® is widely regarded as the best single gauge of large-cap U.S. equities and serves as the foundation for a wide range of investment products. The index includes 500 leading companies and captures approximately 80% coverage of available market capitalization.

S&P 500 INDEX (SPX INDEX)

Index Rebalance & ETF Flow Recap: NKY, ASX, CSI300, A50, STTF, LowVol30, Value Up

This recap highlights Insights covering Asian index rebalances (announcements/ forecasts/ IPO Fast Entry/ M&A driven changes). We also highlight...

Brian Freitas

The Weekly Market Monitor – These Two All-Time Highs Are No Coincidence!

Forget the macro data for a moment. This week was all about central banks opening the door to policy easing and scarce assets recording new all...