Finance
Global equity funds post first outflow in eight weeks on middle east conflict
Published by Global Banking & Finance Review®
Posted on March 6, 2026
2 min readLast updated: March 6, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on March 6, 2026
2 min readLast updated: March 6, 2026
Global equity funds saw their first net outflow in eight weeks in the week through March 4, as U.S. equity funds experienced their largest weekly redemption since January 7 amid geopolitical tensions and inflation fears.
March 6 (Reuters) - Global investors trimmed their equity fund holdings for the first time in eight weeks in the seven days to March 4 as an intensifying U.S.-Israeli conflict with Iran fanned inflation worries and dampened risk appetite.
U.S. equity funds were the hardest hit, with net sales of $21.92 billion, the biggest outflow since January 7, leading global equity funds to post net outflows of roughly $1.44 billion, LSEG Lipper data showed.
The widening Middle East conflict raised fears of a global oil price shock, weighing on equities and heightening concerns about inflation and a potential delay in interest-rate cuts.
The MSCI World Index is on track for its worst week since early April 2025, registering over 2.5% declines this week.
Meanwhile, inflows into European equity funds eased to $8.8 billion from about $11.88 billion the previous week, while Asian funds attracted a net $7.43 billion.
Among sector funds, industrials and energy drew net inflows of $2.53 billion and $1.21 billion respectively, while financial sector funds saw roughly $1.9 billion in outflows.
Safe-haven demand lifted net inflows into money market funds to $20.22 billion, broadly in line with the previous week's inflows.
Investors also pumped $16.12 billion into global bond funds for a ninth successive weekly net purchase.
Inflows in short-term bond funds surged to $3.62 billion from approximately $1.23 billion a week ago. Euro-denominated bond funds and corporate bond funds also saw significant $2.31 billion and $2.09 billion net inflows.
Investors, meanwhile, ditched roughly $2.62 billion worth of gold and precious metals commodity funds in their second weekly net sales in eight weeks.
In emerging markets, equity funds saw a cooling in inflows to an eight-week low of $5.3 billion. Net purchases in bond funds also eased to $2.5 billion from roughly $3.04 billion recorded the previous week, data for a combined 28,803 funds showed.
(Reporting by Gaurav Dogra; editing by Philippa Fletcher)
Intensifying U.S.-Israeli conflict with Iran heightened inflation worries and reduced investors' risk appetite, leading to the first outflow in eight weeks.
U.S. equity funds were hardest hit, with net sales of $21.92 billion, while global equity funds posted net outflows of about $1.44 billion.
The conflict raised fears of a global oil price shock, negatively impacting equities and delaying potential interest rate cuts.
Industrials and energy attracted net inflows, while financial sector funds saw outflows of roughly $1.9 billion.
Investors continued to pump money into global bond funds, marking nine consecutive weeks of net purchases.
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