Published by Global Banking & Finance Review®
Posted on August 1, 2025
2 min readLast updated: January 22, 2026
Add as preferred source on Google
European equity funds face outflows amid tariff concerns, while US funds attract inflows. Global bond funds continue to see strong investment.
(Reuters) -European equity funds came under selling pressure in the week through July 30 as a rally in regional stocks cooled, with investors growing cautious over the uncertain economic implications of the U.S.–EU trade deal and signs of weakening corporate earnings.
However, a record-setting rally on Wall Street drew investors into U.S. equity funds.
According to LSEG Lipper data, investors offloaded a net $41.12 billion worth of European funds in their largest weekly sales since at least 2018 but scooped up U.S. funds worth a net $6.34 billion to end a two week trend of net selling. They also added a net $3.05 billion into Asian funds.
Some European capitals criticized the U.S.-EU trade deal struck last weekend, saying the headline 15% tariff on EU goods, up from a previous average of 1.47%, tilts in favor of the United States and offers little support for the bloc’s economic prospects.
The Stoxx 600 index hit nearly a month's low of 540.63 on Friday, while the S&P 500 closed 0.37% lower on the previous day's trade after logging a fresh record high of 6427.02.
Global equity sectoral funds saw a second successive weekly inflow, amounting to $1.65 billion. The financial, tech and industrial sectors received a significant $1.09 billion, $931 million and $691 million, respectively while healthcare witnessed a net $757 million in weekly sales.
Debt oriented funds were popular for the 15th week in a row with a net $15.35 billion worth of investments in global bond funds.
Short-term bond funds saw a massive $3.38 billion weekly inflow following a net $4 billion purchase the prior week. Euro denominated bond funds and government bond funds also witnessed a robust $2.85 billion and $1.5 billion weekly net purchase.
Investors, meanwhile, withdrew $36.02 billion from money market funds in their largest weekly sales since May 28.
In the commodities space, demand for gold and precious metals funds eased to a 10-week low, with a net $285.8 million in net inflows.
Emerging markets saw upbeat demand, with investors snapping up $1.92 billion worth of equity funds, the most since July 2 and plowing in a net $1.31 billion into bond funds, data for a combined 29,684 funds showed.
(Reporting by Gaurav Dogra in Bengaluru; editing by Toby Chopra)
European equity funds experienced significant selling pressure, with a net outflow of $41.12 billion, marking the largest weekly sales since at least 2018.
In contrast, US equity funds attracted a net inflow of $6.34 billion, driven by a record-setting rally on Wall Street.
Investors grew cautious due to the uncertain economic implications of a new 15% tariff on EU goods, which critics argue favors the United States.
Global equity sectoral funds saw a second consecutive weekly inflow, with significant investments in financial, tech, and industrial sectors totaling over $2.7 billion.
Investors withdrew $36.02 billion from money market funds, marking the largest weekly sales since May 28.
Explore more articles in the Headlines category
