The Federal Reserve's interest rate cut expectations boost global stock funds, attracting $10.65 billion in a single week, setting a three-week high
Global equity funds saw an inflow of $10.65 billion in the week ending September 3, marking a three-week high, primarily boosted by expectations of interest rate cuts from the Federal Reserve and the Google antitrust ruling. Investor bets on policy easing strengthened, attracting significant funds to equity funds in Europe, Asia, and the United States. Technology stock funds attracted $1.87 billion, and fixed income funds continued to be favored, with global bond funds attracting inflows for 20 consecutive weeks
According to Zhitong Finance APP, global equity funds experienced the largest weekly inflow of funds in three weeks for the week ending September 3, driven by rising market expectations for a Federal Reserve rate cut later this month and a favorable antitrust ruling for Google (GOOGL.US) that boosted market sentiment. According to LSEG Lipper data, investors net invested $10.65 billion into global equity funds for the week ending September 3, marking the largest weekly inflow since August 13.
Signs of a cooling U.S. labor market and dovish comments from some Federal Reserve officials have strengthened investors' bets on policy easing. The CME's "FedWatch Tool" indicates that the market expects a 99.7% probability of a 25 basis point rate cut by the Federal Reserve this month.
By region, European equity funds attracted a net inflow of $3.85 billion, up from $1.32 billion a week earlier; Asian equity funds attracted a net inflow of $3.3 billion; and U.S. equity funds attracted a net inflow of $2.42 billion.
By sector, technology equity funds attracted a net inflow of $1.87 billion, the largest weekly net inflow since August 13; financial, gold, and precious metals equity funds also attracted investor interest, with net inflows of $1.16 billion and $1.07 billion, respectively.
Fixed income remains favored. Global bond funds attracted inflows for the 20th consecutive week, totaling $18.74 billion. Euro-denominated bond funds attracted $2.61 billion, the highest level since August 13; corporate bond funds attracted $2.13 billion; and short-term bond funds attracted $1.82 billion.
Additionally, inflows into money market funds climbed to a four-week high of $57.59 billion. Commodity funds linked to gold and precious metals attracted $5.2 billion in inflows, the highest weekly level since at least November 2021.
In emerging markets, equity funds saw a net inflow of $1.05 billion for the week, the highest since July 30. According to data from 29,699 funds, investors also net purchased $2 billion in emerging market bond funds
