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GRAPHIC-Global equity funds draw inflows on European rally
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GRAPHIC-Global equity funds draw inflows on European rally
Feb 14, 2025 4:11 AM

Feb 14 (Reuters) - Global equity funds attracted

significant inflows in the week ending February 12, after a Bank

of England rate cut drove a rally in European shares, although

caution over U.S. President Donald Trump's tariff policies

limited investor activity.

LSEG Lipper data showed investors bought global equity funds

worth a net $5.66 billion during the week, reversing their $2.47

billion in net sales the prior week.

The pan-European STOXX 600 index hit new records on

five consecutive days this week, driven by strong earnings from

companies such as drugmaker AstraZeneca ( AZN ), copper producer

Aurubis, and financial services group Societe Generale

.

European equity funds attracted a hefty $6.03 billion in

inflows during the week, following net purchases of about $3.3

billion in the previous week.

Asian funds attracted a net $1.46 billion while U.S. funds

recorded net sales of $2.25 billion.

Global sectoral equity funds also saw a net $258 million

worth of sales, the first weekly outflow in six weeks. Consumer

discretionary and healthcare funds with $987 million and $645

million, respectively in net sales, led the weekly outflows.

Global bond funds were popular for the seventh week in a row

with a net $10.36 billion in purchases.

Global short-term bond funds received $6.22 billion, the

highest in five weeks. Loan participation funds and high yield

bond funds also experienced robust inflows of $1.3 billion and

$1.2 billion, respectively.

Investors, meanwhile, pumped $20.1 billion into money market

funds following net purchases of about $75.13 billion the week

before.

In the commodities space, demand for gold and other precious

metals funds jumped to the highest in four and a half months as

investors poured $1.41 billion into these funds. Energy funds

also drew a marginal $29.19 million in inflows.

Investors in emerging market equity funds were sellers for a

14th consecutive week as data covering 29,627 of these funds

showed outflows of $1.11 billion. Conversely, bond funds added a

net $695 million, marking the sixth consecutive weekly inflow.

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