Latest news with #MSCIEurope
New Straits Times
4 days ago
- Business
- New Straits Times
Global investors flock to ex-US markets for better growth, valuations
KUALA LUMPUR: Global ex-US equity funds received their biggest inflows in more than four-and-a-half years in July, as investors redirected capital away from the United States on concerns over the economy, stretched stock values, and a weakening dollar. These funds began seeing inflows earlier this year as President Donald Trump's economic policies hurt the appeal of US markets. But the steep gains in July suggest a sustained shift towards diversification, particularly into Europe and emerging markets benefitting from easier monetary conditions and improved growth prospects. According to LSEG Lipper, global ex-U.S. equity funds secured an inflow of US$13.6 billion in July, the highest since December 2021. In contrast, US-focused equity funds saw US$6.3 billion in outflows, marking their third straight month of redemptions. "While tariff de-escalation was a tailwind in the second quarter, unresolved trade negotiations and policy deadlines approaching in the early third quarter pose ongoing risks," Shelton Capital Management Chief Investment Officer Derek Izuel said. "Persistent uncertainty could reignite flows out of US equities, particularly if growth differentials continue to narrow or the Federal Reserve maintains restrictive monetary policy." The divergence in performance has been another key driver of outflows from US equities, with the MSCI Asia Pacific ex-Japan index up around 14 per cent and the MSCI Europe index gaining more than 19 per cent this year, outpacing the S&P 500's 7.2 per cent rise. Furthermore, the dollar has declined about 10 per cent this year, amplifying returns for US investors from international markets. Jim Smigiel, chief Investment Officer at SEI, said that while global diversification remains a key focus, it is too soon to tell if recent flows mark a sustained shift. "We see this recent trend as more of a strategic rebalancing to neutral positioning from a geographic perspective and less of an adoption of any underweight to the US," he said. The forward 12-month price-to-earnings ratio of the MSCI US index stood at 22.6, much higher than MSCI Asia's 14.4, MSCI Europe's 14.2 and MSCI World's 19.7.
Yahoo
06-08-2025
- Business
- Yahoo
Tel Aviv Stock Exchange Ltd (TVAVF) Q2 2025 Earnings Call Highlights: Record Revenue Growth and ...
Release Date: August 05, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Tel Aviv Stock Exchange Ltd (TVAVF) reported a record quarter with a 29% increase in revenues and a 56% rise in adjusted EBITDA. The equity market cap reached 1.7 trillion shekels, marking a 21% increase from the end of 2024. Equity average daily trading volumes hit a new all-time high with a 40% increase, driven by significant net inflows from foreign investors. The IPO market saw a resurgence with 9 new companies raising over 1.5 billion shekels, nearly doubling the number from 2024. The company is exploring strategic measures for its index business, potentially leading to a partnership or sale to enhance global distribution. Negative Points Expenses increased by 8%, primarily due to higher computer and communication expenses and depreciation. Net financing income decreased due to a reduction in the balance of deposits and exchange rate volatility. The surplus equity and liquidity decreased, partly due to a significant share buyback in the first quarter. There is uncertainty regarding the impact of transitioning to a Monday to Friday trading week on trading volumes. Despite strong growth, the retail segment's participation in the Israeli capital market remains relatively low compared to other leading countries. Q & A Highlights Warning! GuruFocus has detected 8 Warning Sign with TVAVF. Q: Can you provide some background on the decision to explore potential options for the index business, and why now? A: The index business has been growing, and we see significant potential ahead. However, we lack a global distribution platform. Partnering with a global entity could enhance our reach, allowing investors worldwide to access our indices. This exploration could lead to a transaction, strategic collaboration, or even a decision to maintain the status quo. The timing is right due to increased global interest in our indices and the strong economic data from Israel. CEO, Itai Ben Zaev Q: What impact do you anticipate from the transition to a Monday to Friday trading week? A: The transition is now formalized to start on January 5, 2026. This change aligns with global trading practices and could enhance our chances of entering the MSCI Europe index, which would bring significant passive and active inflows. While Sunday has been a good trading day, global investors favor the change, and we expect a positive impact on international flows in the medium to long term. CEO, Itai Ben Zaev Q: Can you discuss the outlook for new listings and capital markets activity in the second half of the year? A: We have a strong pipeline for H2, with more companies understanding the value of going public. Despite a slowdown due to inflation and interest rates, we are seeing increased readiness for IPOs. If conditions remain stable, we expect more quality companies to enter the market. CEO, Itai Ben Zaev Q: How are you managing expenses, particularly in terms of compensation and other line items, for the second half of the year? A: We've reached the cap on variable compensation for employees, and we don't foresee any surprises or changes in our expense management. Overall, we are in a good position moving forward. CFO, Yab Benezra Q: With excess cash and strong organic growth, are there any plans for M&A or other uses of capital? A: We conducted a buyback in January and continue to generate cash. We don't see a need for M&A as we have strong organic growth and all necessary resources in our supply chain. Currently, there are no specific plans for capital utilization, but it's a positive position to be in. CEO, Itai Ben Zaev For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
Yahoo
11-06-2025
- Business
- Yahoo
Investors pull out of US stocks and into Europe and emerging markets
By Patturaja Murugaboopathy (Reuters) -Global investors have moved money from U.S. equities and into European and emerging markets assets, as concerns mount over U.S. fiscal policy, rising debt and the risk that trade tariffs will trigger a recession. Equity mutual funds and exchange-traded funds, or ETFs, domiciled in the United States saw outflows of $24.7 billion in May, the largest in a year, data from LSEG Lipper showed. By contrast, European funds attracted $21 billion in May, lifting year-to-date inflows to $82.5 billion, the highest in four years. Data for 292 emerging market equity ETFs showed inflows of $3.6 billion last month, bringing total inflows this year to $11.1 billion. Analysts said the dollar's weakness and the selloff in U.S. Treasury bonds have eroded the safe-haven appeal of U.S. assets, driving capital into markets with appreciating currencies. European markets have outperformed U.S. peers this year, helped by lower interest rates and optimism over Germany's 1-trillion-euro stimulus plan. The European Central Bank cut interest rates for the eighth time in a year last week in an effort to support the economy, even as it warned of rising trade risks with the United States. Michael Field, chief European market strategist at Morningstar, said the shift from the United States to Europe was initially driven by valuations but increasingly has been fueled by a change in investor sentiment. "With investors rattled by the U.S. administration's actions and worried about the potential drag on equity markets, this may mark the start of a medium-term trend." Since the start of the year, the MSCI United States index has gained 2.7%, while MSCI Europe has risen about 20% and MSCI Asia Pacific is up 10%. Emerging market equity funds have also attracted money flows because of improving fundamentals, with Latin America seen as a safe option as trade and military conflicts elsewhere make investors seek more stable regions. Asian economies are increasingly driven by domestic consumption. Manish Raychaudhuri, founder and CEO of Emmer Capital Partners Ltd, said lower debt and stronger growth made Asian equities better positioned to benefit from U.S. capital outflows compared with European ones. "While Italy, France and the UK face rising debt burdens, many Asian economies carry lighter fiscal loads, keeping bond yields stable and investor confidence intact." The forward 12-month price-to-earnings ratio for MSCI U.S. stood at 20.4, compared with 13.5 for MSCI Europe and 14.2 for MSCI Asia Pacific. (Reporting By Patturaja Murugaboopathy; editing by Barbara Lewis)
Yahoo
11-06-2025
- Business
- Yahoo
Investors pull out of US stocks and into Europe and emerging markets
By Patturaja Murugaboopathy (Reuters) -Global investors have moved money from U.S. equities and into European and emerging markets assets, as concerns mount over U.S. fiscal policy, rising debt and the risk that trade tariffs will trigger a recession. Equity mutual funds and exchange-traded funds, or ETFs, domiciled in the United States saw outflows of $24.7 billion in May, the largest in a year, data from LSEG Lipper showed. By contrast, European funds attracted $21 billion in May, lifting year-to-date inflows to $82.5 billion, the highest in four years. Data for 292 emerging market equity ETFs showed inflows of $3.6 billion last month, bringing total inflows this year to $11.1 billion. Analysts said the dollar's weakness and the selloff in U.S. Treasury bonds have eroded the safe-haven appeal of U.S. assets, driving capital into markets with appreciating currencies. European markets have outperformed U.S. peers this year, helped by lower interest rates and optimism over Germany's 1-trillion-euro stimulus plan. The European Central Bank cut interest rates for the eighth time in a year last week in an effort to support the economy, even as it warned of rising trade risks with the United States. Michael Field, chief European market strategist at Morningstar, said the shift from the United States to Europe was initially driven by valuations but increasingly has been fueled by a change in investor sentiment. "With investors rattled by the U.S. administration's actions and worried about the potential drag on equity markets, this may mark the start of a medium-term trend." Since the start of the year, the MSCI United States index has gained 2.7%, while MSCI Europe has risen about 20% and MSCI Asia Pacific is up 10%. Emerging market equity funds have also attracted money flows because of improving fundamentals, with Latin America seen as a safe option as trade and military conflicts elsewhere make investors seek more stable regions. Asian economies are increasingly driven by domestic consumption. Manish Raychaudhuri, founder and CEO of Emmer Capital Partners Ltd, said lower debt and stronger growth made Asian equities better positioned to benefit from U.S. capital outflows compared with European ones. "While Italy, France and the UK face rising debt burdens, many Asian economies carry lighter fiscal loads, keeping bond yields stable and investor confidence intact." The forward 12-month price-to-earnings ratio for MSCI U.S. stood at 20.4, compared with 13.5 for MSCI Europe and 14.2 for MSCI Asia Pacific. (Reporting By Patturaja Murugaboopathy; editing by Barbara Lewis) Sign in to access your portfolio
Japan Times
05-05-2025
- Business
- Japan Times
European firms fare better than expected through early trade pain
European firms are reporting earnings significantly ahead of expectations, allowing for some relief in the market, but tariffs and the uncertain path of economic growth continue to cloud the outlook. Companies on the MSCI Europe index are averaging earnings growth of 3.8% so far, outpacing preseason estimates of a 1.4% decline, with over half of the index's market value having reported. Sales growth for the basket of European firms is also currently ahead of estimates, Bloomberg Intelligence data shows. "First quarter earnings look solid with blended EPS starting to inflect higher, but top-line beats have been tepid,' said Barclays strategists including Magesh Kumar Chandrasekaran and Emmanuel Cau. Still, they add that "guidance has been weak and sentiment on capex has turned cautious owing to tariffs,' citing exposed sectors including commodities, discretionary, industrials and utilities.
