Global equity funds post third weekly outflow on slowdown fears

(Reuters) – Global equity funds faced a third straight week of outflows in the week to July 12 on concerns over the prospect of further central bank interest rate hikes and the health of economies worldwide.

According to Refinitiv Lipper, investors disposed of $4.33 billion worth of global equity funds in a third straight week of net selling.

GRAPHIC: Fund flows: Global equities bonds and money market- https://fingfx.thomsonreuters.com/gfx/mkt/lbvgnelljpq/Fund%20flows-%20Global%20equities%20bonds%20and%20money%20market.jpg

Data released this week showed U.S. consumer prices accelerated faster than economists had forecast, as the CPI jumped 9.1% in the 12 months to June, bolstering the case for more supersized Fed rate hikes.

European and U.S. equity funds saw outflows worth $4.04 billion and $1.41 billion respectively, but Asian funds obtained $0.6 billion in inflows.

Data for sector funds showed consumer discretionary, metals and mining, and industrials suffered outflows of $846 million, $494 million and $419 million respectively, but utilities drew $519 million in a second straight week of inflow.

GRAPHIC: Fund flows: Global equity sector funds- https://fingfx.thomsonreuters.com/gfx/mkt/egpbkxooqvq/Fund%20flows-%20Global%20equity%20sector%20funds.jpg

Meanwhile, safer money market funds accumulated inflows for a second consecutive week, drawing $5.15 billion.

Global bond funds recorded weekly net selling worth $3.1 billion, after receiving a marginal inflow of $385 million in the previous week.

Global government bond funds remained in demand for a 10th successive week, with net purchases of $1.47 billion, but short- and medium-term, and high yield funds faced withdrawals worth $3.05 billion and $1.83 billion respectively.

GRAPHIC: Global bond fund flows in the week ended July 13- https://fingfx.thomsonreuters.com/gfx/mkt/dwvkrbzzypm/Global%20bond%20fund%20flows%20in%20the%20week%20ended%20July%2013.jpg

Among commodity funds, investors offloaded precious metal funds worth $2.18 billion, marking a second straight week of net selling, while energy funds gained marginal inflows, worth $31 million, after six weeks of outflows in a row.

An analysis of 24,310 emerging market funds showed equity funds drew $531 million, as net buying continued for a fourth week, but bond funds had outflows of $1.9 billion.

GRAPHIC: Fund flows: EM equities and bonds- https://fingfx.thomsonreuters.com/gfx/mkt/klpykynnjpg/Fund%20flows-%20EM%20equities%20and%20bonds.jpg

(Reporting by Gaurav Dogra and Patturaja Murugaboopathy in Bengaluru; Editing by Emelia Sithole-Matarise)