REUTERS: Global equity funds lured the highest inflow in two months in the week ended June 23, as investors focussed on prospects for post-pandemic growth rather than fretting over the hawkish stance taken by the U.S. Federal Reserve last week.
Global equity funds received a net US$22.9 billion in the week, the biggest since the week ended March 24, data from Refinitiv Lipper showed.
Title: Fund flows into global equities bonds and money markets, https://fingfx.thomsonreuters.com/gfx/mkt/yxmvjzoyzvr/Fundper cent20flowsper cent20intoper cent20globalper cent20equitiesper cent20bondsper cent20andper cent20moneyper cent20markets.jpg
Global stocks have rebounded this week after steep losses after the Federal Reserve unexpectedly signalled that it could begin tapering its massive stimulus sooner than expected and also flagged its intention to consider withdrawing its monetary stimulus moving forward.
U.S equity funds led inflows with net purchases worth US$16.1 billion, which was the biggest in 14 weeks. However, European equity funds and Asian equity funds had inflows of just US$3.4 billion and US$1.8 respectively.
Among equity sector funds, tech funds had inflows worth US$1.4 billion, the highest in 10 weeks, while financial sector funds faced outflows worth US$2.36 billion, the largest since March 2020.
Title: Global fund flows into equity sectors, https://fingfx.thomsonreuters.com/gfx/mkt/dgkvlrgervb/Globalper cent20fundper cent20flowsper cent20intoper cent20equityper cent20sectors.jpg
Meanwhile, global bond funds had net buying of US$3.5 billion in the week to June 23, which was the smallest in four weeks.
Inflows into inflation-linked bonds dropped to an eight-week low of US$31 million.
Title: Global bond funds flows in the week ended June 23, https://fingfx.thomsonreuters.com/gfx/mkt/jznpnyeabvl/Globalper cent20bondper cent20fundsper cent20flowsper cent20inper cent20theper cent20weekper cent20endedper cent20Juneper cent2023.jpg
However, global money market funds faced an outflow of US$58.9 billion in the week, their biggest this year, which underscores a rise in risk sentiment this week.
Among commodity funds, precious metal funds faced net sales worth US$215 million, while energy funds also witnessed outflow for fourth consecutive week.
An analysis of 23,735 emerging-market funds showed bond funds faced net selling worth US$1.23 billion, marking the first outflow in four weeks, and equity funds had outflows of US$183 million, compared with US$1.5 billion worth of inflows in the previous week.
Title: Fund flows into EM equities and bonds, https://fingfx.thomsonreuters.com/gfx/mkt/yzdvxlobovx/Fundper cent20flowsper cent20intoper cent20EMper cent20equitiesper cent20andper cent20bonds.jpg
(Reporting by Gaurav Dogra and Patturaja Murugaboopathy in Bengaluru; Editing by Alex Richardson)