According to Lipper data, global equity funds attracted inflows of $10.12 billion, a 12% increase over the previous week.
(GRAPHIC: Fund flows into global equities bonds and money markets – https://fingfx.thomsonreuters.com/gfx/mkt/zjpqkqxlxpx/Fund%20flows%20into%20global%20equities%20bonds%20and%20money%20markets.jpg)
European equity funds had the major share of the inflows, receiving $5.6 billion, while U.S. equity funds obtained $2.7 billion.
About 69% of global firms have beaten analysts’ profit estimates in the second quarter, posting an average growth of 143%, with cyclical sectors such as industrials, energy and consumer discretionary firms leading the earnings recovery, according to Refinitiv data.
OCBC said the strong U.S. economic data – with consumer price increases slowing and weekly jobless claims dropping – improved sentiment, raising inflows into equity funds in the week.
Among equity funds, financial sector funds attracted $1.05 billion, while the tech sector had inflows of just $359 million.
(GRAPHIC: Global fund flows into equity sectors – https://fingfx.thomsonreuters.com/gfx/mkt/xmpjogzdgvr/Global%20fund%20flows%20into%20equity%20sectors.jpg)
“Financials reported the largest inflows last week indicating a positive outlook by the market on continued and sustained economic growth,” the OCBC report said.
Global bond funds received a net $12.3 billion, which was a 14% drop from the prior week, marking improving risk sentiment among investors.
Global money market funds saw a 66% drop in their weekly inflows to $12.6 billion.
(GRAPHIC: Global bond funds’ flows in the week ended Aug 11 – https://fingfx.thomsonreuters.com/gfx/mkt/gkplgmrywvb/Global%20bond%20funds’%20flows%20in%20the%20week%20ended%20Aug%2011.jpg)
Among commodity funds, precious metal funds faced outflows of $280 million as gold prices slumped to a more than a four-month low this week.
An analysis of 23,770 emerging market funds showed investors bought a net $736 million in equity funds, but sold $447 million in bond funds.
(GRAPHIC: Fund flows into EM equities and bonds – https://fingfx.thomsonreuters.com/gfx/mkt/mypmnmdlnvr/Fund%20flows%20into%20EM%20equities%20and%20bonds.jpg)
Source: Economy - investing.com
