(Reuters) – Global equity funds attracted money inflows in the week ended Oct. 26, bolstered by expectations the Federal Reserve would slow its pace of rate hikes to counter the economic slowdown.

According to Refinitiv Lipper data, investors bought a net $7.8 billion worth of global equity funds in the week, after ditching them in the previous nine weeks.

U.S. equity funds obtained $7.9 billion, while Asian equity funds received $2.1 billion. On the other hand, European equity funds faced net sales of $2.3 billion during the week, the data showed.

U.S. business activity contracted for a fourth straight month, data on Monday showed, suggesting that the Fed’s rate increases have softened the economy, which in turn raised hopes that the central bank could begin slowing the pace of the hikes.

Global stock markets were also buoyed this week after the Bank of Canada delivered a smaller-than-expected interest rate hike and said it was getting closer to the point where rate increases could end.

However, lingering worries over an economic recession were evident, as investors put a huge amount of money in safer money market funds.

The data showed global money market funds received inflows worth $18.6 billion, its fourth consecutive weekly inflow.

Meanwhile, global bond funds had outflows for the 10th successive week, with net sales of $4.9 billion.

Emerging market (EM) bonds and equities faced outflows worth $2.1 billion and $1.4 billion respectively, data for 24,664 EM funds showed.

Among commodity funds, precious metal funds had outflows of $457 million, lesser than the net sales of $1.2 billion in the previous week. Energy funds, on the other hand, received a small inflow of $81.3 million.

(Reporting By Patturaja Murugaboopathy in Bengaluru; editing by David Evans)