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 (2330.TW), opens new tab posted a record profit and Gatorade owner PepsiCo (PEP.O), opens new tab 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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The Independent
a few seconds ago
- The Independent
Donald Trump announces trade agreement with the European Union
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Daily Mirror
a minute ago
- Daily Mirror
Donald Trump agrees trade deal between US and EU avoiding huge tariff war
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We don't know what that number is but the good news is we make the best military equipment in the world." Trump said they'd also agreed to a "straight across" tariff of 15% on automobiles. "I think that basically concludes the deal," he said. "Those are the main factors. I don't think there are too many other factors." The Commission's President was seated next to Trump at his golf resort on the Scottish coast. Earlier she had called for a rebalancing of bilateral trade worth billions of dollars between the vital partners. Speaking to reporters before their private meeting began, she and Trump both put the chances of reaching an agreement at 50-50. 'This is bigger than any other deal,' Trump said, suggesting they could hammer out an agreement in just a short time. The president also pledged to change what he characterized as 'a very one-sided transaction, very unfair to the United States.' "I think both sides want to see fairness,' Trump said. 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During remarks before the media Sunday, the president pointed to a recent US agreement with Japan that set tariff rates for many goods at 15% and suggested the EU could agree to something similar. Asked if he would be willing to accept tariff rates lower than that, Trump said 'no.' "I'd like to see it resolved,' Trump said of a deal with Europe. 'But if it isn't, we'll have tariffs.' Of retaliation from Europe he said, 'They'll do what they have to do.' Joining von der Leyen were Maros Sefcovic, the EU's chief trade negotiator; Björn Seibert, the head of von der Leyen's Cabinet; Sabine Weyand, the commission's directorate-general for trade, and Tomas Baert, head of the trade and agriculture at the EU's delegation to the U.S. The US and EU seemed close to a deal earlier this month, but Trump instead threatened the 30% tariff rate. The deadline for the Trump administration to begin imposing tariffs has shifted in recent weeks but is now firm, the administration insists. 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All you have to do to join is click on this link, select 'Join Chat' and you're in! We may also send you stories from other titles across the Reach group. We will also treat our community members to special offers, promotions, and adverts from us and our partners. If you don't like our community, you can check out any time you like. To leave our community click on the name at the top of your screen and choose Exit group. If you're curious, you can read our Privacy Notice. CLICK HERE TO JOIN Without an agreement, the EU said it would have been prepared to retaliate with tariffs on hundreds of American products, ranging from beef and auto parts to beer and Boeing airplanes. Had Trump eventually made good on his threat of tariffs against Europe, it could make everything from French cheese and Italian leather goods to German electronics and Spanish pharmaceuticals more expensive in the United States. 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Reuters
a minute ago
- Reuters
Reaction to US and EU trade deal
TURNBERRY, Scotland, July 27 (Reuters) - U.S. President Donald Trump on Sunday said the United States and the European Union had reached agreement on a trade deal that includes a 15% tariff on EU goods entering the U.S. and significant EU purchases of U.S. energy and military equipment. The deal also calls for $600 billion in investments in the U.S. by the European Union, he told reporters. This follows a U.S. deal with Japan on July 23 that cut tariffs on auto imports and other goods in exchange for a $550 billion package of U.S.-bound investment and loans. Major financial markets were still closed. The euro ended last week around three-week highs at $1.1738, while the STOXX 600 <.STOXX > hit its highest since early June last week as optimism built for an EU/U.S. trading deal. Following are comments from business leaders and companies, and market reaction to the announcement. COMMENTS: MICHAEL BROWN, SENIOR RESEARCH STRATEGIST, PEPPERSTONE, LONDON: "The EU is going to be hit with a 15% tariff which is pretty punchy but it's half of the 30% they were threatened with and it's well off the 50% that Trump had been throwing around at the start of the month so that's good news." "This is more a case of the risk of no deal being removed as opposed to whether it's 15%-20%, I'm not entirely sure that matters so much at least not in terms of how markets are going to trade in an hour or so when things get up and running for the week." "The two obvious reactions that you would expect are upside in the euro and upside in equity futures. I don't think equities in particular needed much of an excuse to rally and now they've got one." ERIC WINOGRAD, CHIEF ECONOMIST, ALLIANCEBERNSTEIN, NEW YORK: "This is very similar to the deal we reached with Japan." "We will need to see how long the sides stick to the deal. From a market perspective, it is reassuring in the sense that having a deal is better than not having a deal." RICK MECKLER, PARTNER, CHERRY LANE INVESTMENTS, NEW VERNON, NEW JERSEY: "It's really in line with the Japan deal, and I assume investors will view it positively as they viewed the Japan deal. The reality is there will be higher tariffs, which may lead to more inflation, depending on how much of it is absorbed by the manufacturers and how much of it is passed on to consumers. I think from the administration's point of view, they probably have begun to address the balance of trade issues. The question remains whether using tariffs as a way to address these imbalances is positive for the global economy or just a tax that helps with jobs here in the U.S."
