The outflows of investment capital from global equity funds over the course of the seven days between Feb. 21 and such a peak occur as a result of the hot inflation data, which does not meet the expectations of investors for an early Fed rate cut.
According to data from LSEG, investors reversed their fund purchases shifting to a net $2.64 billion of sellout during the week after $10.32 billion value of net purchases in the previous week.
There were some profit-taking in equity funds as there were concerns over the Fed’s rates’ strategy and high US producer, and consumer price figures.
All the while, the MSCI World Stock Index (.MIWD00000PUS), open new tab, on the other hand, managed to set another all-time high (761.3) on Thursday, as Nvidia’s NVDA.O forecasted almost three-fold increase in Q1 revenue which provided a catalyse for AI-related chip stocks going up globally.
The U.K. equity fund outflows totaled $2.67 billion and $0.07 billion for US and European equity funds. While Asian funds gathered about $2.02 billion of inflows, flows from them.
For sector funds, the losses in terms of money were $594 million, $574 million, and $420 million, which occurred in financials, healthcare, and metals & mining sectors due to heavy net selling and those sectors became the leader in outflows.
In contradiction, however, the global bond funds garnered $9.72 billion worth of net inflows, this being the ninth consecutive week of net buying.
Global high-yield bond funds, avatars of inflow of $1.09 billion, came in a week which represented the largest sum in three weeks period. More money was put into government bond funds by investors than $719 million and loan participation funds $225 million.
These funds, though, saw net outflows in the amount of $9.69 billion, thus creating the second-week trend.
In commodities, the precious metal funds recorded eight straight weeks of outflows, amounting to $767 million, but the energy funds benefited from $42 in a week in net buying
In the latest weeks data for 29,685 emerging market funds has demonstrated equity funds received $269 million inflow that was the third one in a row. While stock funds, on the other hand, continued the outflow trend of the last week with net selling of $1.1 billion.
