Buy, Sell, Watchlist

We integrate into our watchlist (on the downside) the ETF Lyxor BNK (European Bank index), whose fees are 0.3% and the AUM of approximately 775 M€. The ongoing correction in the banking sector is related to the relapse in interest rates, while the ECB seems less in rush to normalise monetary policy.

We include in our Watchlist the ETF Lyxor AUT (Automotive Index Europe) with a fee of 0.3% and an AUM of approximately € 36 million. AUT increased by only 3% since the beginning of the year (against 5.8% for the Stoxx600).

We integrate the Lyxor CC1 ETF (China) into our Megatrend portfolio, while Chinese growth is accelerating through consumption and the Chinese economy is showing signs of consolidation, which is visible through the rise in raw materials (Copper, Zinc, Nickel ..). We are taking out the Lyxib ETF (IBEX35 Spain) due to the lower interest rates that penalize the banking sector, which is 1/3 of the Spanish index.

We integrate the ETF Lyxor RUS (DJ Russia Index) with the costs of 0.65% and the AUM is of 445 M€. The correction in the Russian index since the beginning of 2017 ( -14.4% YTD) seems to be coming to an end.

We integrate the ETF Lyxor LTM (Latin America) into our Euro Active portfolio. This ETF has been performing very well for a few weeks, as it benefits from both trade-offs relative to the Asian zone, due to geopolitical tensions, but also to the surge in commodities (copper in particular), while Chile is the world's leading producer.

We decide to exit the ETF Lyxor TEL (Telecoms Europe Index) from the Euro Asset portfolio, while the index weakens (mainly due to the UK components which suffers from the fall in the Pound) and is entering a correction phase. We are replacing it with a much more dynamic ETF that is less correlated with Stoxx600, which has a positive momentum and a significant upward potential in the short and medium term: the Lyxor WIG ETF (Polish WIG20 index).

We integrate the Lyxor JPN ETF (Topix Japan Index) into our Watchlist in negative watch, as a result of technical deterioration. The costs of this ETF are 0.45% for a high AUM  of 1267M €.

• The rise of the Yen against the USD is gaining momentum which is expected to hurt Japanese exports.

We include in our watchlist the ETF Amundi AM3A, which replicates the FTSE MTS Highest-Rated Government Index, which consists of securities issued by the governments of euro area member states (at least 5 issuers) with at least two Ratings equivalent to 'AAA' (at S & P, Moody's and Fitch).