Investor Demand Lifts Global Equity Funds to Strongest Inflows Since October
Global equity funds witnessed the largest weekly net purchase in 15 weeks in the week to January 14, as investors pushed world stocks close to record highs, extending momentum from last year and brushing aside concerns over the global economy and geopolitics.
Easing U.S. inflation pressures strengthening expectations of interest rate cuts later this year also boosted equities.
According to LSEG Lipper data, global equity funds witnessed a net $45.59 billion worth of investments during the week, the largest since the $49.13 billion net purchase in the week through October 1.
The MSCI World index (.MIWD00000PUS), which rallied 20.6% last year, hit fresh records this week and is up about 2.4% so far this year.
A U.S. Labor Department report on Tuesday showed a moderate rise in core CPI in December, solidifying expectations that the Federal Reserve may trim interest rates later this year.
U.S. equity funds received $28.18 billion, the largest amount for a week in 2-1/2 months and topped regional inflows. European and Asian equity funds saw $10.22 billion and $3.89 billion worth of net purchases, respectively.
The tech, industrial, and metals and mining sectors were particularly popular as these sectors experienced weekly inflows of $2.69 billion, $2.61 billion and $1.88 billion, respectively.
Global bond funds witnessed a $19.03 billion weekly net investment, in line with the prior week’s $19.12 billion inflow.
Short-term bond funds and euro-denominated bond funds drew net inflows of $2.23 billion and $2 billion, respectively. Loan participation funds and high-yield bond funds also had a net $1 billion each in inflows.
Money market funds had a net $67.15 billion weekly outflow with investors partly redeeming a combined $250 billion net investment in the prior two weeks.
Gold and precious metals commodity funds saw a net $1.81 billion inflow, with investors registering a ninth weekly net purchase in 10 weeks.
Emerging market assets were popular as investors pumped $5.73 billion in equity funds, the largest amount for a week since October 2024, while adding a net $2.09 billion worth of bond funds, data for a combined 28,701 funds showed.
Reporting by Gaurav Dogra: Editing by Sharon Singleton
This article was first reported by Reuters
