financetom
Economy
financetom
/
Economy
/
Global equity funds see strong weekly inflows on U.S. rate cut hopes
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
Global equity funds see strong weekly inflows on U.S. rate cut hopes
May 24, 2024 3:28 AM

(Reuters) - Global equity funds secured robust inflows in the week ended May 22, driven by optimism over slowing inflation and expectations of U.S. Federal Reserve rate cuts in the latter half of the year.

According to Lipper data, global equity funds attracted $11.1 billion in inflows, a 22% increase from the previous week.

U.S. equity funds received most of those inflows, in total $9.9 billion. European equity funds garnered $4.6 billion, while Asian equity funds had outflows of $4.3 billion.

Investor optimism prevailed throughout the week, buoyed by April's U.S. inflation data, which suggested the resumption of a downward trend. However, sentiment waned on Friday as global stocks declined, with strong U.S. economic data reinforcing expectations that interest rates might remain elevated for an extended period.

Sector-specific funds saw varied movements; mining and technology sectors received $449 million and $290 million in inflows, respectively. In contrast, industrial and consumer discretionary sectors each faced outflows of around $200 million.

Global bond funds also benefited, drawing $12 billion, a substantial increase from the previous week, with ongoing robust demand as investors anticipate rate cuts.

Global high-yield bond funds saw inflows surge to $3.2 billion, while government bond funds attracted $1.2 billion.

"Fixed income remains our preferred asset class, within which we favour quality bonds. We expect quality bond yields to fall in the months ahead as markets start to price a more convincing central bank rate-cutting cycle," Mark Haefele, chief investment officer at UBS Global Wealth Management, said.

At the same time, money market funds also received an inflow of $17.2 billion, after witnessing outflows in the previous month.

In the commodities sector, precious metals funds recorded a second consecutive week of inflows, adding $407.4 million, while energy funds faced net sales of approximately $150 million.

Emerging market funds showed robust activity with net equity purchases of $1.7 billion, the highest weekly total for this year. Bond funds in these markets also continued to attract capital, with inflows of $338 million marking their second consecutive week of gains.

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
Fed's Barkin says latest CPI data shows price pressures continue to ease
Fed's Barkin says latest CPI data shows price pressures continue to ease
Jan 15, 2025
ANNAPOLIS, Maryland (Reuters) - U.S. inflation data for December indicates price pressures are continuing to ease, Richmond Federal Reserve President Thomas Barkin said on Wednesday after a government report showed that an important underlying measure of price increases had slowed last month. The Consumer Price Index report for December continues the story we have been on, which is that inflation...
Hedge funds increased bearish bets ahead of Friday's blowout US jobs report, banks say
Hedge funds increased bearish bets ahead of Friday's blowout US jobs report, banks say
Jan 15, 2025
NEW YORK (Reuters) - Global hedge funds added more bets against U.S. stocks over the last week through Jan 9, ahead of a blowout U.S. jobs report that sparked a sell-off on Wall Street, Morgan Stanley and Goldman Sachs said in notes on Friday. The U.S. Labor Department's closely watched employment report on Friday showed job growth accelerated to 256,000...
Fed hawks and doves: what US central bankers are saying
Fed hawks and doves: what US central bankers are saying
Jan 15, 2025
(Reuters) - U.S. central bankers project more limited interest-rate cuts in 2025 than the full percentage point of reductions they delivered in 2024, given slower progress toward their 2% inflation goal, a still-strong labor market, and a lot of uncertainty over the potential impact of tax cuts, tariffs and other economic policies in Donald Trump's second term as president. Here...
Fed's Williams says policy data dependent in very uncertain environment
Fed's Williams says policy data dependent in very uncertain environment
Jan 15, 2025
HARTFORD, Connecticut (Reuters) - Federal Reserve Bank of New York President John Williams said Wednesday that future monetary policy actions will be driven by economic data as the central bank confronts a high level of uncertainty in large part driven by potential government policy changes. Monetary policy is well positioned to keep the risks to our goals in balance and...
Copyright 2023-2026 - www.financetom.com All Rights Reserved