Online brokers and mutual funds do not seem like an transparent combination, yet funds account for 14 per cent of the $228-billion investment through online brokerage firms, according to the latest retail brokerage reporting from Investor Economics shows. Stocks are the top choice at 66 per cent. Cash and cash equivalents such as Treasury bills account for 12 per cent of assets and bonds and guaranteed investment certificates account for 8 per cent.
Mutual funds are at large a bigger business for internet/online brokers than the ETFs. Funds are also more lucrative, which may explain why so less firms have done anything to reduce down the cost of investing in funds for their clients.
US crude held $97.50/bbl overnight but continues to face resistance near $992.5 the $100.00.
UK crude has broken out over $109.50/bbl this morning on reports that Iranian students have stormed the British Embassy in Tehran indicating further political unrest in the Middle East which could impact supply.
Gasoline remains steady within a $2.50-$2.55/gallon channel with next resistance on a breakout near $2.63.
Natural gas has stabilized in the $3.50-$3.55/mmbtu range after a bear trap washout overnight.
Gold has stabilized in the $1,700-$1,720/oz area.
Silver has been quiet overnight in the $31.50-$32.25 area.
Copper has been consolidating in the $3.35-$3.40/lb range.
Worldwide markets are integrated this morning as the street digests yesterday’s big recover that removed more of last week’s losses. There wasn’t a lot of great information overnight, Fitch dividing their outlook on the US and press reports that S&P may cut its attitude on France just do not cut it as great happening any more acknowledged how much fearfulness has already been priced into markets.
Italy’s bond sale did succeed to appeal sufficient bidders to clear but with interest rates remaining well surfaced above the 7.0% bailout obstruction, it just shows that anything can be finished at the right cost. It also indicates that fears surrounding Italy continue to run high.
In currency markets, GBP has been outperforming different European currencies today after the OBR anticipate delayed growth but not a recession and lodging data came in healthier than anticipated. AUD regained par suggesting that few of the recent pessimism continues to degenerate.
It’s fair that there had been few lite enthusiasm after the Italian bond sale but this has quickly started to slow down and some markets have turned moderately lower on profit-taking. At the moment, street sentiment remains stuck between economic data that suggests stagnation to borderline recession but not a full meltdown and ongoing political uncertainty that has been long on rumour, and short on detail. It appears that markets have gone essentially into consolidation mode awaiting the flood of economic news due in the second half of this week led by PMI numbers on Thursday and employment numbers on Friday.