2024-02-02 10:52:04
Global equity funds attracted strong inflows in the week ending January 31, thanks to upbeat data on economic growth in the United States and inflation readings showing a continued moderation of price pressures.
According to LSEG data, global equity funds saw net inflows of $7.43 billion during the week, contrasting with outflows seen in the previous five weeks.
Last week, a Commerce Department report showed that the U.S. economy grew much faster than expected (3.3 percent) in the latest quarter, easing fears of a looming recession.
Separately, data last week showed that the U.S. Personal Consumption Expenditure Index – the Federal Reserve’s preferred inflation gauge – rose moderately in December, reinforcing expectations of cuts of interest in the months to come.
By region, Asian equity funds attracted $3.7 billion, the largest inflow in three weeks. American and European funds attracted $1.83 billion and $1.14 billion, respectively.
Investors poured $1.98 billion into technology sector funds, continuing their buying trend for the third straight week. The industrial sector also attracted $579 million, while the utilities sector saw cash outflows of $1.04 billion.
Debt funds were in demand for the sixth consecutive week, with investors pouring regarding $12.5 billion into global bond funds on a net basis.
Global high-yield funds received $4.25 billion, marking their seventh consecutive week of net purchases. Government funds and loan participation funds were also subject to net purchases of $1.5 billion and $452 million.
Meanwhile, money market funds received $32.89 billion, their first weekly inflow in three weeks.
In the commodities segment, precious metals funds received approximately $50 million, representing a significant decline from the previous week’s $511 million in net purchases. Energy funds, meanwhile, saw $77 million in net purchases.
Data covering 29,702 emerging market funds shows that stock funds saw $361 million in net purchases, the first weekly inflow in three weeks, while bond funds suffered regarding $711 million in net purchases. net sales.
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