Global equity funds attract inflows for second week in a row
Reuters
Published Aug 19, 2022 05:44AM ET
(Reuters) - Global equity funds received inflows for a second straight week in the week to Aug. 17, as investors tempered their expectations for the peak of the U.S. interest rate hike cycle, with a fall in commodity prices pointing to cooling price pressures.
According to Refinitiv Lipper, global equity funds attracted a net $3.22 billion worth of purchases, a 19% increase in inflows over the previous week.
Get The News You Want
Graphic: Fund flows: Global equities bonds and money market https://fingfx.thomsonreuters.com/gfx/mkt/myvmneylopr/Fund%20flows-%20Global%20equities%20bonds%20and%20money%20market.jpg
Get The News You Want
Data showed during the reported week that U.S. producer prices declined last month, while another report showed import prices dipped for the first time in seven months in July, which indicated U.S. inflation was finally coming off the boil.
Stronger-than-expected results from Walmart (NYSE:WMT) and Home Depot (NYSE:HD) also bolstered views on the health of consumers.
Investors purchased U.S. equity funds worth $6.85 billion, but European and Asian funds suffered outflows of $3.53 billion and $230 million respectively.
Among sector funds, tech, financials, and consumer staples gained $1.29 billion, $931 million and $501 million, respectively in inflows.
Get The News You Want
Graphic: Fund flows: Global equity sector funds https://fingfx.thomsonreuters.com/gfx/mkt/gkvlgokyxpb/Fund%20flows-%20Global%20equity%20sector%20funds.jpg
Get The News You Want
Meanwhile, purchases in bond funds continued for a third straight week, with investors pouring in a net $2.15 billion.
High yield bond funds attracted $1.78 billion, marking a fourth weekly inflow, while short- and medium-term funds brought in $663 million. Meanwhile, government funds had outflows of $1.2 billion after two weeks of inflows.
Get The News You Want
Graphic: Global bond fund flows in the week ended Aug 17 https://fingfx.thomsonreuters.com/gfx/mkt/zdvxozgbxpx/Global%20bond%20fund%20flows%20in%20the%20week%20ended%20Aug%2017.jpg
Get The News You Want
Investors exited $7.46 billion worth of money market funds in a second straight week of outflows.
Data for commodities funds showed precious metal funds had a eighth week of outflows, with withdrawals of $454 million, while energy funds saw $135 million in net selling, after a week of purchases.
An analysis of 24,426 emerging market funds showed bond funds received $986 million in a third straight week of inflows, although equity funds suffered outflows worth $857 million.
Get The News You Want
Graphic: Fund flows: EM equities and bonds https://fingfx.thomsonreuters.com/gfx/mkt/movangoalpa/Fund%20flows-%20EM%20equities%20and%20bonds.jpg
Get The News You Want
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.