Global equity funds post second weekly inflows in a row


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Global equity funds secured weekly inflows for a second straight week in the week to Jan. 18 on hopes over waning inflationary risks and more measured rate hikes from the Federal Reserve, though recent data showed a drop in consumer spending.

Refinitiv Lipper data showed global equity funds obtained $5.24 billion worth of inflows during the week, a tad higher than the previous week.

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However, most inflows went into European equity funds, as investors were chasing the region’s equity markets, which were more battered last year, and are available at cheaper valuations.

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European equity funds received $7.06 billion, while Asian equity funds obtained $1.16 billion. On the other hand, U.S. equity funds faced outflows worth $3.13 billion.

Meanwhile, global bond funds also had inflows for the third consecutive week, drawing $13.23 billion worth of money.

Investors purchased global corporate funds worth $3.74 billion, with high-yield funds luring $2.1 billion. However, their buying in government bond funds dipped to a 12-week low of $4 million.

Global money market funds faced their first outflow in four weeks, suggesting increased investor risk appetite.

Investors sold $222 million worth of precious metal funds among commodity funds, marking their biggest weekly selling in seven weeks. Energy funds also faced an outflow of $62 million.

Data for 24,637 emerging market (EM) funds showed equity funds gained $6.03 billion to record their biggest weekly inflow since at least Feb. 2021. Bond funds also obtained $1.4 billion, booking a third weekly net buying in a row.

(Reporting by Gaurav Dogra and Patturaja Murugaboopathy in Bengaluru; Editing by Kim Coghill)


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