Home Economic, Financial news Global equity funds see outflows for an eighth straight week

Global equity funds see outflows for an eighth straight week


Global equity funds see outflows for an eighth straight week
© Reuters. FILE PHOTO: U.S. one hundred dollar notes are seen in this picture illustration taken in Seoul February 7, 2011. REUTERS/Lee Jae-Won/File Photo

(Reuters) – Global equity funds posted net outflows for an eighth straight week in the seven days to Dec. 28 as a stronger than expected U.S. GDP reading raised worries that U.S. interest rates could stay higher for longer.

However, outflows were capped by a Commerce Department report that showed U.S. consumer spending barely rose in November, while inflation cooled further.

According to Refinitiv Lipper data, investors withdrew a net $529 million from global equity funds, although that was down from $39.1 billion the previous week.

Graphic: Fund flows: Global equities bonds and money market – https://fingfx.thomsonreuters.com/gfx/mkt/zjvqjjzawpx/Fund%20flows-%20Global%20equities%20bonds%20and%20money%20market.jpg

U.S. equity funds recorded a net $5.41 billion worth of outflows but Asian and European funds attracted a net $1.66 billion and $460 million respectively.

Among equity sector funds, tech, financials and industrials saw net selling of $835 million, $468 million and $192 million respectively.

Graphic: Fund flows: Global equity sector funds – https://fingfx.thomsonreuters.com/gfx/mkt/xmvjkkdjnpr/Fund%20flows-%20Global%20equity%20sector%20funds.jpg

Meanwhile, a net $3.35 billion was withdrawn from bond funds, markedly lower than the $15.06 billion of outflows in the previous week.

Short- and mid-term bond funds experienced their 19th straight week of outflows, at $1.59 billion, while high yield bond funds lost a net $179 million.

Graphic: Global bond fund flows in the week ended Dec. 28 – https://fingfx.thomsonreuters.com/gfx/mkt/gkvlwwyjjpb/Global%20bond%20fund%20flows%20in%20the%20week%20ended%20Dec%2028.jpg

Investors purchased lower risk money market funds worth a net $14.18 billion and parked $814 million in government bond funds in a eighth straight week of net buying.

Data for commodity funds showed precious metal funds attracting a second straight week of inflows at a net $330 million, while energy funds recorded a net outflow of $247 million as selling continued from the previous week.

According to data available for 24,668 emerging market (EM) funds, both equity and bond funds saw net weekly outflows, amounting $344 million and $97 million, respectively.

Graphic: Fund flows: EM equities and bonds – https://fingfx.thomsonreuters.com/gfx/mkt/myvmooljbvr/Fund%20flows-%20EM%20equities%20and%20bonds.jpg

Source: Investing.com



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