According to LSEG data, investors sold a net $4.93 billion worth of global equity funds during the week, marking their largest weekly net sales since June 12.
Investors were concerned about the U.S. economy after a report from the Institute for Supply Management (ISM) on Tuesday revealed that U.S. manufacturing had contracted for the fifth consecutive month in August. Additionally, anticipation was building for the non-farm payrolls report, where a weak outcome could heighten fears of a sharp economic downturn.
Investors offloaded a net $11.73 billion worth of U.S. equity funds, marking a fourth weekly outflow in five weeks. On the contrary, European and Asian equity funds still gained about $5.25 billion and $1.88 billion worth of inflows.
The technology sector witnessed a significant $995 million worth of outflow following three weekly inflows in a row. Investors also ditched real estate and consumer discretionary funds of $388 million and $304 million, respectively.
Global investors sought the safety of money market funds as they pumped in a massive $67.92 billion into these funds in a fifth successive week of net purchases.
Simultaneously, investors snapped up global bond funds of a net $10.85 billion, extending net purchases into the 37th consecutive week.
They racked up a robust $3.26 billion worth of corporate bond funds, logging the largest inflow since July 17. Dollar denominated medium-term bond funds and government bond funds also observed $2.8 billion and $1.46 billion worth of net investments.
Concurrently, gold and other precious metal funds garnered a net $792 million worth of inflows, staying popular for the fourth week in a row. Investors also scooped up a net $189 million worth of energy funds.
Data covering 29,588 emerging market funds showed equity funds witnessed a 13th weekly outflow that amounted to a net $419 million. Conversely, bond funds attracted $1.45 billion, the biggest weekly inflow since July 10.
Source: Economy - investing.com
