According to data from LSEG, investors purchased a net $15.7 billion worth of global equity funds during the week after about $21.95 billion worth of net accumulation in the previous week.
The MSCI World Stock Index hit a new record of 785.62 following the Fed’s Wednesday announcement, which reinforced its stance on reducing rates three times this year.
Regionally, U.S. funds led with $14.07 billion in inflows, the highest since mid-June 2023, while Asian funds added $3.29 billion, but European funds saw outflows of $1.91 billion.
The tech sector funds gained $2.12 billion in inflows during the week, the biggest amount since Feb. 14, whereas the financial sector faced sales of $1.02 billion. The metals & mining sector attracted $459 million.
Bond funds extended their inflow streak to 13 weeks, attracting $4.88 billion, with corporate bonds drawing $3.17 billion and government bonds $1.3 billion. However, global short-term bonds experienced $2.12 billion in net withdrawals.
Money market funds, meanwhile, witnessed outflows of about $65.9 billion, their first weekly net selling in four weeks.
Among commodities, precious metal funds broke a seven-week-long selling trend with a massive $1.46 billion worth of net buying, the biggest since May 2022. Conversely, energy funds suffered $102 million worth of outflows.
Data covering 29,715 emerging market funds showed equity funds lost $450 million in outflows, marking their third weekly net selling in a row. Bond funds also witnessed $933 million worth of net disposals in contrast to about $454 million worth of net purchases, a week ago.
Source: Economy - investing.com
