Global equity fund inflows jump on rate cut expectations
Published by Global Banking and Finance Review
Posted on September 5, 2025
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Published by Global Banking and Finance Review
Posted on September 5, 2025
(Reuters) -Global equity funds drew their biggest weekly inflows in three weeks in the period to September 3, lifted by growing expectations of a Federal Reserve rate cut this month and a favorable antitrust ruling for Alphabet that buoyed sentiment.
Investors poured a net $10.65 billion into global equity funds, the largest weekly purchase since August 13, data from LSEG Lipper showed.
Signs of a cooling U.S. labor market and dovish remarks from Fed officials have strengthened bets on policy easing.
Markets are pricing a 99.7% likelihood of a quarter-point Fed rate reduction this month, CME's Fed Watch tool showed.
By region, European equity funds attracted $3.85 billion, up from $1.32 billion the previous week. Asian funds took in $3.3 billion, while U.S. equity funds saw $2.42 billion in net inflows.
Technology led sector allocations with $1.87 billion, the biggest weekly intake since August 13. Financials and gold and precious metals funds also drew strong interest, with net inflows of $1.16 billion and $1.07 billion, respectively.
Fixed income remained in favor. Global bond funds posted a 20th straight week of net inflows, totaling $18.74 billion. Euro-denominated bond funds drew $2.61 billion, the most since August 13.
Corporate bond funds gained $2.13 billion, and short-term bond funds added $1.82 billion.
Flows into money market funds jumped to a four-week high, with $57.59 billion in net new money.
Commodity funds tied to gold and precious metals recorded $5.2 billion in inflows, the highest weekly haul since at least November 2021.
In emerging markets, equity funds gained a net $1.05 billion weekly inflow, the most since July 30. Investors also bought bond funds of a net $2 billion, based on data from 29,699 funds.
(Reporting by Gaurav Dogra in Bengaluru; Editing by Tasim Zahid)