Investing
Global equity funds gain weekly inflows after big selloff
Global Banking & Finance Review®
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(Reuters) – Global equity funds obtained capital inflows in the week ended June 22, following a heavy selling in the previous week, as a slide in commodity prices slightly assuaged investor fears over rapid inflation.
(Reuters) – Global equity funds obtained capital inflows in the week ended June 22, following a heavy selling in the previous week, as a slide in commodity prices slightly assuaged investor fears over rapid inflation.
According to Refinitiv Lipper, investors secured global equity funds of $7.51 billion in net purchases. That compares with withdrawal of $30.49 billion in the previous week, which was the biggest net selling since at least July 2020.
The MSCI all-country share index has gained more than 2% this week after a three-week-long losing streak that wiped out 10% of index value.
Some analysts said there are chances the central banks could shy away from aggressive rate hikes in coming months as recession fears rise.
U.S. and Asian equity funds drew inflows of $11.38 billion and $7.52 billion, respectively, but European funds suffered outflows of $7.79 billion.
Meanwhile, bond funds witnessed big outflows, worth a net $29.96 billion, as selling continued for a third week.
Global short- and medium-term bond funds posted outflows of $8.71 billion, the biggest since at least July 2020. High yield funds also lost $5.16 billion in net selling, but government funds lured $2.64 billion worth of inflows.
Investors also exited $6.7 billion worth in money market funds, after offloading $61.38 billion in the previous week.
In the commodities space, investors acquired precious metal funds worth $247 million marking the first weekly net buying in four weeks, while energy funds had meagre purchases of $61 million.
An analysis of 24,320 emerging market funds showed bond funds witnessed outflows of $5.3 billion, the biggest amount since at least July 2020, but equity funds obtained $453 million, marking the first inflow in three weeks.
(Reporting by Gaurav Dogra and Patturaja Murugaboopathy in Bengaluru; Editing by Sherry Jacob-Phillips)
A capital inflow refers to the movement of money into a country or investment, typically for the purpose of investment or purchasing assets.
Equity funds are investment funds that primarily invest in stocks or shares of companies, aiming to provide investors with capital appreciation.
A bond fund is a mutual fund or exchange-traded fund that invests primarily in bonds, aiming to provide income and preserve capital.
Inflation is the rate at which the general level of prices for goods and services rises, eroding purchasing power.
Emerging markets are nations with social or business activity in the process of rapid growth and industrialization, often characterized by higher risk and potential for higher returns.
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