This marked a second consecutive week of inflows into global equity funds, LSEG data showed.
Last week, U.S. central bankers indicated that, despite a recent uptick in price pressures, broader progress on inflation could pave the way for interest rate cuts later this year.
The MSCI World Stock Index reached a record high of 774.66 on Friday, buoyed by earlier testimonies from Fed Chair Jerome Powell, which reinforced expectations of upcoming rate cuts. By region, Asian funds attracted about $2.89 billion during the week, their eighth consecutive week of net purchases. European and U.S. funds also reported net inflows of approximately $1.9 billion and $1.2 billion, respectively.
The technology sector continued to draw investor interest, with $1.45 billion in fund inflows, marking its eighth week of net purchases.
Meanwhile, the consumer discretionary and industrials sectors attracted $726 million and $611 million in net investments, respectively. By contrast, the financial sector saw net withdrawals of $834 million.
Global bond funds experienced a significant influx, amassing $18.04 billion worth of inflows, the largest weekly amount since mid-April 2021.
Medium-term U.S. dollar bond funds were particularly popular, attracting about $3.7 billion, the largest net inflow since May 3, 2023. Corporate and government bond funds also saw inflows of $3.06 billion and $2.23 billion, respectively.
Money market funds meanwhile, saw $57.3 billion worth of net buying, the largest weekly net purchase in eight weeks. Among commodities, precious metal funds saw outflows for a 10th consecutive week, totalling about $788 million on a net basis. Energy funds also had $121 million of net disposals.
Emerging markets were out of favour as investors remained net sellers of debt funds for a seventh successive week. They also offloaded about $1.73 billion worth of equity funds to withdraw the biggest amount since Jan. 24, data covering 29,724 funds showed.
Source: Economy - investing.com
