Global equity funds see second weekly outflow on caution over economic outlook
Sept 13 (Reuters) -Global investors were net sellers of equity funds for a second successive week through Sept. 11, driven by concerns over the health of the U.S. economy and caution about the political climate in the run-up to the U.S. Presidential debate.
However, optimism over central banks' rate cuts trimmed down the outflows.
According to LSEG data, investors withdrew $3.46 billion from global equity funds during the week, a reduction in sales volume compared to the $4.96 billion in net sales the prior week.
U.S. data signalling economic slowdown sparked last week's global equity sell-off, but world stocks rebounded over 2% this week following an ECB rate cut and prospects of a 50-basis point U.S. rate cut in the next week's meeting.
Investors sold $7.82 billion worth of U.S. equity funds last week following $11.54 billion in net sales the prior week. Conversely, Asian and European funds drew inflows of $2.91 billion and $793 million, respectively.
"We prefer global equities to fixed income once again, as rate cuts are starting around the globe and joblessness is still low," Ajay Rajadhyaksha, chairman for global research at Barclays, said in a note.
"But investors may elect to sit on the sidelines for now, awaiting clarity that will emerge from the US presidential election."
The technology sector experienced a substantial $1.97 billion outflow in the week to Sep. 11, the largest since November 2023. Meanwhile, investors withdrew $1.53 billion from financials and allocated $1.12 billion and $878 million to consumer staples and utilities, respectively.
During the week, investors added $21.67 billion and $4.14 billion, respectively, to safer money market and government bond funds.
Global bond funds attracted $11.81 billion in their 38th consecutive week of inflows, with investors notably putting $3.12 billion into short-term funds and $1.5 billion into high-yield funds.
Gold and other precious metal funds retained their appeal for the fifth consecutive week with $472 million in net purchases, while energy funds saw an increase of $150 million in inflows.
Data covering 29,592 emerging market funds showed equity funds lost $1.05 billion in outflows for the 14th week in a row. In contrast, bond funds gained $567 million, marking a 12th straight week of inflow.
Fund flows: Global equities, bonds and money markets https://tmsnrt.rs/3Jt3wjr
Fund flows: Global equity sectors https://tmsnrt.rs/3J5InKT
Weekly flows into global bond funds https://tmsnrt.rs/44OuJ93
Fund flows: EM equities and bonds https://tmsnrt.rs/3ysJzD6
Reporting by Gaurav Dogra and Patturaja Murugaboopathy in Bengaluru;
Editing by Tomasz Janowski
Pinakabagong Balita
Disclaimer: Ang mga kabilang sa XM Group ay nagbibigay lang ng serbisyo sa pagpapatupad at pag-access sa aming Online Trading Facility, kung saan pinapahintulutan nito ang pagtingin at/o paggamit sa nilalaman na makikita sa website o sa pamamagitan nito, at walang layuning palitan o palawigin ito, at hindi din ito papalitan o papalawigin. Ang naturang pag-access at paggamit ay palaging alinsunod sa: (i) Mga Tuntunin at Kundisyon; (ii) Mga Babala sa Risk; at (iii) Kabuuang Disclaimer. Kaya naman ang naturang nilalaman ay ituturing na pangkalahatang impormasyon lamang. Mangyaring isaalang-alang na ang mga nilalaman ng aming Online Trading Facility ay hindi paglikom, o alok, para magsagawa ng anumang transaksyon sa mga pinansyal na market. Ang pag-trade sa alinmang pinansyal na market ay nagtataglay ng mataas na lebel ng risk sa iyong kapital.
Lahat ng materyales na nakalathala sa aming Online Trading Facility ay nakalaan para sa layuning edukasyonal/pang-impormasyon lamang at hindi naglalaman – at hindi dapat ituring bilang naglalaman – ng payo at rekomendasyon na pangpinansyal, tungkol sa buwis sa pag-i-invest, o pang-trade, o tala ng aming presyo sa pag-trade, o alok para sa, o paglikom ng, transaksyon sa alinmang pinansyal na instrument o hindi ginustong pinansyal na promosyon.
Sa anumang nilalaman na galing sa ikatlong partido, pati na ang mga nilalaman na inihanda ng XM, ang mga naturang opinyon, balita, pananaliksik, pag-analisa, presyo, ibang impormasyon o link sa ibang mga site na makikita sa website na ito ay ibibigay tulad ng nandoon, bilang pangkalahatang komentaryo sa market at hindi ito nagtataglay ng payo sa pag-i-invest. Kung ang alinmang nilalaman nito ay itinuring bilang pananaliksik sa pag-i-invest, kailangan mong isaalang-alang at tanggapin na hindi ito inilaan at inihanda alinsunod sa mga legal na pangangailangan na idinisenyo para maisulong ang pagsasarili ng pananaliksik sa pag-i-invest, at dahil dito ituturing ito na komunikasyon sa marketing sa ilalim ng mga kaugnay na batas at regulasyon. Mangyaring siguruhin na nabasa at naintindihan mo ang aming Notipikasyon sa Hindi Independyenteng Pananaliksik sa Pag-i-invest at Babala sa Risk na may kinalaman sa impormasyong nakalagay sa itaas, na maa-access dito.
