Risk appetite cools down, global equity funds see net outflows for the first time in five weeks
As of the week ending September 10, global equity funds experienced their first net outflow of funds in nearly five weeks, amounting to $3.06 billion. Investors shifted to a cautious stance due to profit-taking and a reduction in risk exposure. Although expectations for a Federal Reserve interest rate cut supported historical highs in the stock market, political uncertainty and geopolitical tensions prompted fund outflows. Meanwhile, global bond funds and money market funds saw net inflows of $18.18 billion and $6.079 billion, respectively
According to the latest data from Zhitong Finance APP, as of the week ending September 10, global equity funds experienced their first net outflow in nearly five weeks. This phenomenon is attributed to investors choosing to take profits and reduce their risk exposure.
Supported by market expectations that the Federal Reserve will cut interest rates three times this year, major global stock markets reached historic highs this week. However, political uncertainties in France and Japan, as well as escalating geopolitical tensions in the Middle East and Ukraine, prompted investors to adopt a more cautious wait-and-see attitude.
According to statistics from LSEG's Lipper, global equity funds saw a net outflow of $3.06 billion during the week that marked the first net sales since August 6.
The outflow was primarily driven by net sales of $10.44 billion in U.S. equity funds, the highest in five weeks. European and Asian funds recorded net inflows of $3.77 billion and $1.87 billion, respectively.
Sector funds achieved net inflows for the third consecutive week, attracting $5.04 billion that week. Among them, technology, healthcare, and consumer discretionary funds saw inflows of $3.59 billion, $709 million, and $544 million, respectively.
Global bond funds had a net inflow of approximately $18.18 billion that week, maintaining net inflows for the 21st consecutive week.
Global short-term bond funds saw a net inflow of $3.47 billion, the highest since August 13. High-yield bond funds and euro-denominated bond funds recorded inflows of $3.08 billion and $1.66 billion, respectively.
In search of safe havens, investors poured $60.79 billion into money market funds, the highest weekly inflow since August 6.
Gold and precious metals commodity funds had a net inflow of $1.67 billion, achieving net inflows in 15 of the past 16 weeks.
Emerging market equity funds saw a net inflow of $2.18 billion that week, reaching a nine-week high. Bond funds recorded a net inflow of $1.88 billion during the same period.
