Global equity funds see biggest weekly inflows in 15 weeks
Global equity funds recorded their largest weekly net inflows in 15 weeks during the week ending January 14, as investors pushed world stock markets close to record highs.
The buying momentum extended gains from last year, with investors largely setting aside concerns about the global economy and geopolitical risks, News.Az reports, citing Reuters.
Equities were further supported by easing U.S. inflationhttps://news.az/news/us-inflation-expected-to-stay-above-fed-target-in-november pressures, which strengthened expectations that interest rate cuts could be introduced later this year.
According to data from LSEG Lipper, global equity funds attracted net investments of $45.59 billion during the week. This marked the biggest weekly inflow since the $49.13 billion recorded in the week through October 1.
The MSCI World Index, which surged 20.6 percent last year, reached new record levels this week and has risen by about 2.4 percent so far this year.
A report from the U.S. Labor Department released on Tuesday showed a moderate increase in core consumer prices in December, reinforcing expectations that the Federal Reserve may lower interest rates later in the year.
U.S. equity funds led regional inflows, drawing $28.18 billion—the highest weekly total in two and a half months. European equity funds recorded net purchases of $10.22 billion, while Asian equity funds saw inflows of $3.89 billion.
Among sectors, technology, industrials, and metals and mining proved especially attractive to investors, with weekly inflows of $2.69 billion, $2.61 billion, and $1.88 billion, respectively.
Global bond funds witnessed a $19.03 billion weekly net investment, in line with the prior week's $19.12 billion inflow.
Short-term bond funds and euro-denominated bond funds drew net inflows of $2.23 billion and $2 billion, respectively. Loan participation funds and high-yield bond funds also had a net $1 billion each in inflows.
Money market funds had a net $67.15 billion weekly outflow with investors partly redeeming a combined $250 billion net investment in the prior two weeks.
Gold and precious metals commodity funds saw a net $1.81 billion inflow, with investors registering a ninth weekly net purchase in 10 weeks.
Emerging market assets were popular as investors pumped $5.73 billion in equity funds, the largest amount for a week since October 2024, while adding a net $2.09 billion worth of bond funds, data for a combined 28,701 funds showed.
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