Stocks pull in $18.7 billion as investors pile into U.S., Japan - BofA weekly flows
Reuters
Published Jul 16, 2021 05:46AM ET
LONDON (Reuters) - Investors' interest in equity markets continued unabated in the latest week, with U.S. and Japanese stock market fund flows accelerating to multi-week highs at the expense of investment in fixed income funds, BofA said on Friday.
While global equity funds attracted $18.7 billion in the week to Wednesday, U.S.-focused ones took in $9 billion for their largest inflows in four weeks. Flows to Japanese stocks were the biggest in eight weeks at $1.5 billion, BofA said, analysing data from EPFR.
Meanwhile fixed income inflows shrank to $5.6 billion, their smallest since March, with high-yield bond funds suffering the biggest outflows in eight weeks at $2.3 billion in the period that saw U.S. inflation data come in above expectations.
"H1 inflation to H2 stagflation = defensives outperform," noted BofA's Michael Hartnett in a note to clients, adding this was the "summer 'flight-to-quality' as yield curve flattening crushes reflation trades.
Gold funds enjoyed first inflow in four weeks at $200 million over the period, while investors pulled $30.3 billion from cash.
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.