Latest news with #equityFunds
Reuters
3 days ago
- Business
- Reuters
Global equity funds see second weekly outflow on tariff concerns
May 30 (Reuters) - Global equity funds posted outflows for a second straight week through May 28, as risk aversion rose following U.S. President Donald Trump's tariff threats on EU imports and overseas-made iPhones, alongside a spike in long-tenor bond yields. Investors pulled out a net $7.52 billion from global equity funds during the week following a net $9.48 billion worth of sales in the previous week, data from LSEG Lipper showed. In a surprise move last Friday, President Trump threatened to impose 50% tariffs on European Union imports starting June 1, but later postponed the measure until July 9 after a weekend call with European Commission President Ursula von der Leyen. In particular, Asian equity funds witnessed a significant selling pressure during the week as they lost about $6 billion in outflows, the biggest amount for a week since August 2018. Investors sold U.S. equity funds of $5.46 billion but purchased $3.64 billion worth of European equity funds, marking their seventh weekly net purchase in a row. Global bond funds attracted $15.27 billion in net inflows during the week, marking a sixth straight week of gains. U.S. bond funds drew $6.98 billion, while European and Asian bond funds added $6.23 billion and $1.27 billion, respectively. Government and high-yield bond funds also recorded inflows of $1.9 billion and $1.51 billion, respectively. Meanwhile, investors pulled $36.52 billion from money market funds, reversing the previous week's $18.71 billion in inflows. Gold and precious metals commodity funds saw $1.3 billion in inflows, snapping a five-week streak of outflows. Among 29,627 tracked emerging market funds, equity outflows slowed to $183 million from $1.4 billion the previous week, while bond funds drew $885 million, notching a fifth consecutive weekly inflow.
CNA
3 days ago
- Business
- CNA
Global equity funds see second weekly outflow on tariff concerns
Global equity funds posted outflows for a second straight week through May 28, as risk aversion rose following U.S. President Donald Trump's tariff threats on EU imports and overseas-made iPhones, alongside a spike in long-tenor bond yields. Investors pulled out a net $7.52 billion from global equity funds during the week following a net $9.48 billion worth of sales in the previous week, data from LSEG Lipper showed. In a surprise move last Friday, President Trump threatened to impose 50 per cent tariffs on European Union imports starting June 1, but later postponed the measure until July 9 after a weekend call with European Commission President Ursula von der Leyen. In particular, Asian equity funds witnessed a significant selling pressure during the week as they lost about $6 billion in outflows, the biggest amount for a week since August 2018. Investors sold U.S. equity funds of $5.46 billion but purchased $3.64 billion worth of European equity funds, marking their seventh weekly net purchase in a row. Global bond funds attracted $15.27 billion in net inflows during the week, marking a sixth straight week of gains. U.S. bond funds drew $6.98 billion, while European and Asian bond funds added $6.23 billion and $1.27 billion, respectively. Government and high-yield bond funds also recorded inflows of $1.9 billion and $1.51 billion, respectively. Meanwhile, investors pulled $36.52 billion from money market funds, reversing the previous week's $18.71 billion in inflows. Gold and precious metals commodity funds saw $1.3 billion in inflows, snapping a five-week streak of outflows. Among 29,627 tracked emerging market funds, equity outflows slowed to $183 million from $1.4 billion the previous week, while bond funds drew $885 million, notching a fifth consecutive weekly inflow.
Reuters
4 days ago
- Business
- Reuters
London listing advisers shrug off Shein IPO snub
LONDON, May 28 (Reuters) - This time last year Britain was mounting a charm offensive on online retailer Shein, with ministers saying they had conversations with the seller of $5 t-shirts about the benefits of a London listing. A year later and efforts to win over what looked to be one of the largest UK IPOs in the last decade have come to nought. Although the UK signed, opens new tab off on Shein's IPO application, the retailer is instead turning to Hong Kong, opens new tab for its listing, Reuters reported Wednesday. Coming after a string of London delistings and IPO defections, Shein's departure risks delaying efforts to revive the City's appeal while the global economic environment remains volatile. "Shein's listing would have been a boost to the market," said Alasdair Steele, corporate partner with law firm CMS. "However, there was never any guarantee that a single large listing would reignite the IPO market." Last summer, Britain overhauled listing rules to make its exchanges more attractive to companies. That has yet to translate into substantial dealmaking. UK equity capital markets deal values fell in the year to date to $9.2 billion, down 16% from the same period last year and down more than 70% from a peak in 2021. Hong Kong on the other hand has seen its equity capital markets, opens new tab deal values rise nearly fivefold, according to Dealogic data. In the background, UK-focused equity funds have suffered many months of outflows. Shein, whose biggest market is the United States, faces a concrete threat to its low-price model after President Donald Trump ended a duty exemption for small packages shipped from China. But even before the tariff war, it had already downsized its valuation ambitions and faced opposition from some lawmakers. Shein has faced allegations that its clothes contain cotton from China's Xinjiang province, where the U.S. and NGOs have accused the Chinese government of human rights abuses and forced labour. Beijing denies any abuses. Shein has previously said that it has a zero-tolerance policy for forced labour and requires its contract manufacturers to only source cotton from approved regions. Earlier this year a senior lawyer at Shein was questioned by a British parliamentary committee on its supply chain, and committee chair Liam Byrne raised concerns about the evidence from that hearing with the London Stock Exchange and Britain's Financial Conduct Authority, in charge of green-lighting IPOs. Shein gave details of its supply chain in China in written responses to the parliamentary committee's questions in January, and said it does not allow Chinese cotton in its clothes sold in the U.S., which has a law banning products made with Uyghur forced labour. James Alexander, CEO of UK Sustainable Investment and Finance Association, a body that promotes sustainable finance, said: "The prospect of Shein listing in the UK has long raised concerns with investors around the company's transparency, and the risks of being exposed to allegations of modern slavery and human rights abuses in its supply chains." Shein had no immediate comment. "The Shein news is much more to do with China than London," said Lisa Gordon, chair of investment bank Cavendish and a member of the Capital Markets Industry Taskforce (CMIT) - a group dedicated to the revival of Britain's markets. "The London market is in a very good position." It is not the first major IPO loss this year. In February Unilever said it had chosen Amsterdam for the main listing of its ice cream business. That follows a string of London-listed companies that have either considered moving their listings elsewhere, such as Shell, or moved like online betting company Flutter. Britain's government and the London Stock Exchange had no immediate comment on the Reuters report. However, advisers and trade groups say they have been buoyed by a revival in potential IPO candidates in recent weeks. Professional services firm MHA raised 98 million pounds in a float on London's junior market in April, while Cobalt Holdings and online trading platform iForex have revealed plans to list their shares on the London Stock Exchange in the coming months, according to statements from the companies.
Reuters
23-05-2025
- Business
- Reuters
US equity funds face weekly outflows on debt concerns, rising yields
May 23 (Reuters) - U.S. equity funds saw huge outflows in the week ended May 21, as Treasury yields surged on fears President Donald Trump's proposed tax-cut bill could add trillions to U.S. debt if passed by Congress. According to LSEG Lipper data, investors withdrew a net $11 billion from U.S. equity funds, reversing $13.6 billion in inflows the previous week. The 30-year Treasury yield climbed to a 19-month high on Thursday, coming within a few basis points of its highest level since 2007, after the House of Representatives passed a tax-and-spending package that intensified debt concerns. Meanwhile, U.S. bond fund inflows fell to $7.6 billion, down 24% from the prior week, though some investors continued to buy, drawn by attractive yield levels. U.S. government bond funds and high-yield bond funds received $2.8 billion and $1.1 billion, respectively. U.S. money market funds, meanwhile, attracted $20.6 billion in net inflows, rebounding from $10.5 billion in outflows the previous week.
CNA
23-05-2025
- Business
- CNA
Global equity funds post their biggest weekly outflow in six weeks
Global equity funds have seen weekly outflows for the first time in six weeks, pressured by rising U.S. Treasury yields and mounting concerns over the U.S. debt burden and tax-cut legislation, following Moody's downgrade of the U.S. sovereign credit rating. According to LSEG Lipper, global equity funds saw $9.4 billion in net outflows, a sharp reversal from more than $20 billion in inflows the previous week. U.S. equity funds led the retreat, with $11 billion in redemptions, followed by $4.6 billion from Asian funds. European equity funds, on the other hand, received $5.4 billion in inflows. "We suspect investors will be more cautious about piling into the U.S. stock market after the turmoil in April, especially given concerns around fiscal policy," said John Higgins, chief markets economist at Capital Economics. "Those worries have coincided with another surge in long-dated Treasury yields this week following Moody's downgrade of the U.S.' sovereign credit rating and a poorly received 20-year auction," he said. The 30-year Treasury yield climbed to a 19-month high on Thursday, coming within a few basis points of its highest level since 2007, after the House of Representatives passed a tax-and-spending package that intensified debt concerns. In contrast to equities, global bond funds attracted $21.6 billion in inflows, indicating that investors see bonds as appealing at current yield levels. U.S. bond funds took in $7.6 billion, European bond funds added $11 billion, and Asian bond funds saw $1.8 billion in net inflows. By category, U.S. government bond funds received $2.8 billion, U.S. high-yield bond funds drew $1.2 billion, and European corporate bond funds gained $1.5 billion. Money market funds also rebounded, taking in $18.1 billion, following $34 billion in outflows the previous week. However, gold and precious metals commodity funds saw $1.7 billion in outflows, marking their third consecutive week of redemptions. Emerging market (EM) bond funds extended their winning streak with a fourth straight week of inflows, adding $403 million, while EM equity funds posted minor outflows. Still, EM equity funds have attracted $10.6 billion year-to-date, a 43 per cent increase from the same period last year. "The renewed interest in EM is partially due to the concern people have about the end of U.S. exceptionalism and lack of visibility with regards to U.S. ambition," said Alison Shimada, portfolio manager at Allspring Global Investments.
