European Weekly ETF Market Review . The report includes key statistics on the European ETF market as well as global ETF market highlights. For more detailed coverage please refer to our monthly report, issued in the first week following the end of each month.

Click on graph for larger image of calendar year 2012 chart.

When we last looked back at our data for US consumer behavior for the end of 2012, we included comments on two phenomena directly visible in our data:

– On a day-by-day basis we could see that the initially promising “Black Friday” retail sales had not been sustained throughout the balance of the holiday season. In retrospect the promising early sales merely pulled deeply discounted transactions forward from the traditional heart of the holiday season. At that time we suspected that households were being cautious in their spending (especially those requiring short-term revolving credit, e.g. credit cards) as tax hikes loomed at the first of the new year;

Cyprus is the newest drama queen of the EU.

Because central bankers are just guessing in their actions to avert a crisis du jour they took a stab at seizing funds from depositors in Cyprus, that this would create a 1929-esque bank run. This sent waves of fear through markets wondering if Spain or Italy will be next. Nevertheless, QE intoxicated bulls in the U.S. markets took advantage of the overnight drop in futures to buy the dip. Speaking of QE, the FOMC is on tap for a rate decision this afternoon. This should be a non-event because Bernanke has assured zero interest rates far into the future. Despite the market hitting previous all time highs, it is unlikely the Fed will take away the punchbowl. The mere mention of it last month sent traders into a panic.

It has been a relatively light week so far for economic data, most of which is related to the housing sector. The NAHB Housing Market Index missed expectations of 48 coming in at 44, just below the previous 46. Housing starts and permits were both small beats and above the previous reading.

Wednesday, Futures rose overnight giving a gap up at the open off yesterday's selling pressure.

ETFs From Down Under - Australia
Q & A with BetaShares Head of Investment Strategy, Drew Corbett

There is no doubt that ETFs are here to stay as they represent roughly $1.5 Trillion in assets worldwide. In this column, I’ve decided to travel the globe and see what developments are taking place in other markets. First stop, Australia.

In 2004 my wife and I toured Australia for four months. We drove, literally, the perimeter of the country from Sydney, Melbourne, Adelaide, across the Outback, Albany, Perth, Broome, Darwin, Ft. Douglas and beyond.

While there I met with folks from the Australian exchange (ASX) regarding ETFs but it was a bit premature. Today, the Australian ETF market is growing at a blistering pace. Last week I interviewed Drew Corbett, former Head of ETF Trading at Citibank in New York and currently Head of Investment Strategy of BetaShares, one of the leading ETF providers in Australia.

My interview with Drew Corbett follows:

Q: Please describe the current Australian ETF market.

ETFs were first launched in Australia over ten years ago. At that time, however, there was relatively little promotional and marketing activity for the products and so the market remained small. In more recent times, new issuers entered the market, which significantly revamped the ETF sales and education process, and the market has reacted accordingly.

Once again, a small and lethargic economy at the edge of Europe is threatening to upend progress made on resolving the eurozone crisis.

Burdened by an overleveraged and outsized banking system, on March 16 Cyprus took the unprecedented step of announcing a levy on bank deposits in order to secure a bailout from the troika (IMF, European Commission and European Central Bank).

The terms of the bailout have not yet been finalised, and the course of events is evolving quickly. In Business Monitor Online today, we outline our immediate response to this weekend’s developments and answer some of the key questions which have arisen. In particular, we discuss:

• The specific bailout terms
• Why Cyprus is ‘exceptional’
• The role the ECB has played
• The role Germany has played
• The meaning of Cyprus’ crisis for the broader eurozone