Global equity funds draw weekly inflows on trade deal optimism
Global investors snapped up a net $8.71 billion worth of equity funds during the week, reversing a $4.4 billion net withdrawal in the prior week, data from LSEG Lipper showed.
The United States and Japan agreed a deal earlier this week which cut existing import tariffs on Japanese goods to a lower-than-threatened 15%. Investors were also hopeful about the prospects of the U.S. and the European Union settling on U.S. import tariffs of around 15%.
Investors took comfort from encouraging initial earnings reports as advanced AI chip maker TSMC posted a record profit and Gatorade owner PepsiCo upgraded its earnings forecasts.
Net European equity fund inflows reached an 11-week high of $8.79 billion, while Asian funds drew a net $1.17 billion. U.S. equity funds lagged, although net outflows eased to $2.68 billion from about $11.67 billion the prior week.
The technology sector gained $1.61 billion, reversing the previous week's $576 million net outflow. The financial and industrial sectors also saw $1.13 billion and $1.61 billion net additions, respectively.
Net purchases of global bond funds extended into a 14th week as they added $17.94 billion.
Investors pumped $4.14 billion into short-term bond funds, the largest amount in 13 weeks. Euro-denominated bond funds and high-yield funds attracted a net $3.89 billion and $2.51 billion, respectively.
Gold and precious metals commodity funds recorded a net $1.9 billion worth of purchases, the largest weekly figure since June 18.
Global money market funds drew a net $2.09 billion after about $21.78 billion of net sales a week ago.
Emerging markets saw a revival in buying interest with investors adding bond funds of $2.19 billion and equity funds of $250 million after net disposals of $1.14 billion and $155 million in the prior week, data for a combined 29,669 funds showed.
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