Investors withdrew a net $15.12 billion from global equity funds which had seen net inflows of $16.04 billion a week earlier.
Fed Chair Jerome Powell struck a hawkish tone in his testimony before the U.S. House Financial Services Committee on Wednesday, noting that a majority of policymakers expected two more quarter-point rate hikes by year end.
The Bank of England surprised investors by raising interest rates by half a percentage point on Thursday, saying it would take more time for inflationary pressures to subside.
The U.S. and European equity funds witnessed outflows of $16.47 billion and $1.81 billion, respectively, while investors pumped about $2.6 billion into Asian funds.
Healthcare and industrial sectors saw $1.14 billion and $174 million worth of net selling, respectively. Financials attracted about $710 million worth of inflows.
Meanwhile, global bond funds extended their inflows streak to a 14th straight week, with about $4.07 billion flowing in.
Global government and corporate bond funds attracted about $1.9 billion each. Meanwhile high yield, loan participation and convertible funds suffered outflows of about $400 million each.
Meanwhile, investors withdrew a net $15.13 billion from money market funds, their second straight week of outflows.
Among commodity funds, investors withdrew $498 million from precious metal funds, their fourth successive week of net selling. Energy funds also saw $176 million in outflows.
Data for 24,028 emerging market funds showed that investors secured a net $714 million worth of bond funds in their third straight week of net buying. They also purchased $812 million of equity funds.
Source: Economy - investing.com
