Tech rally, AI excitement drive strong inflows into global equity funds
Reuters
Published Mar 01, 2024 05:04AM ET
(Reuters) - Global equity funds drew substantial inflows in the seven days to Feb. 28, driven by a rally in stock markets and greater investor interest in technology stocks, particularly after Nvidia (NASDAQ:NVDA)'s strong earnings forecast and growing enthusiasm about artificial intelligence.
LSEG data showed investors bought a net $6.98 billion of global equity funds during the week, in contrast to net withdrawals the previous week of about $2.93 billion.
Last week, the MSCI World Stock Index hit a new record of 763.35, after Nvidia said it anticipated a significant increase in first-quarter revenue. The forecast briefly propelled Nvidia's market valuation to $2 trillion. By region, Asian funds lead inflows, drawing in a net $3.56 billion, the biggest weekly net purchase in four weeks. European and U.S. funds also drew about $2.52 billion and $196 million, respectively. Investors maintained focus on the technology sector, pouring in $1.35 billion for a seventh consecutive week of net buying. Other sectors, such as industrials and metals and mining, also saw positive inflows, with net purchases of $245 million and $219 million, respectively.
In the bond market, global bond funds continued to attract investors for the 10th consecutive week, drawing in $9.78 billion.
Government bond funds saw a fifth week of net inflows, amounting to roughly $1.79 billion. Medium-term USD bond funds and high yield funds also garnered significant interest, with inflows of $2.45 billion and $709 million respectively.
Money market funds saw their first weekly net purchase in three weeks, totalling about $27.17 billion. Among commodities, precious metal funds suffered outflows for a ninth successive week, amounting to $767 million on a net basis. Energy funds also had about $107 million worth of net selling. Data on 29,702 emerging market funds showed equity funds received a net $506 million, the biggest amount in a week since Dec. 27, 2023. Bond funds lost $328 million in a third consecutive week of net selling.
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.