(Reuters) – Global equity funds saw robust inflows in the week to Oct. 20, boosted by optimism over third-quarter corporate results, which eclipsed worries over higher inflation.
According to data from Lipper, investors bought a net $12.6 billion in global equity funds, the biggest net purchase since the week to Sept. 1.
Graphic: Fund flows into global equities bonds and money markets https://fingfx.thomsonreuters.com/gfx/mkt/akpezajlyvr/Fund%20flows%20into%20global%20equities%20bonds%20and%20money%20markets.jpg
The four largest U.S. consumer banks posted strong quarterly results this month as the rebounding economy allowed them to release more cash they had set aside for pandemic losses, while sizzling deals, equity financing and trading also boosted their bottom lines.
Refinitiv data show 65% of global companies have topped consensus net income estimates so far in the third quarter.
U.S. equity funds attracted a net $4.78 billion, while European and Asian funds brought in $3.83 billion and $1.65 billion respectively.
Chinese equity funds saw weekly net buying for the first time in five weeks, worth a net $494 million, as stresses in the domestic property sector eased..
Among sector funds, financials received a net $1.46 billion, marking a fourth straight weekly inflow. Technology funds gained $1.34 billion of inflows, the most in seven weeks.
Graphic: Global fund flows into equity sectors https://fingfx.thomsonreuters.com/gfx/mkt/byprjrbadpe/Global%20fund%20flows%20into%20equity%20sectors.jpg
Meanwhile, global bond funds secured a net $7.65 billion, the most in four weeks.
Investors purchased $2.48 billion of global high yield bond funds, lifting their weekly net buying to a seven week peak. Inflation protected bond funds received a net $1.53 billion, though government bond funds saw outflows of $151 million.
Graphic: Global bond funds’ flows in the week ended Oct 20 https://fingfx.thomsonreuters.com/gfx/mkt/zdvxorjbxpx/Global%20bond%20funds’%20flows%20in%20the%20week%20ended%20Oct%2022.jpg
Global money market funds received a net $8.76 billion in inflows, compared with outflows of $1.02 billion in the previous week.
Among commodity funds, precious metals funds faced a fourth weekly outflow of $463 million, and energy funds saw marginal net selling of $54 million, after an inflow in the previous week.
An analysis of 23,862 emerging market funds showed investors purchased $1.46 billion of equity funds, but sold $1.3 billion of bond funds, the fifth consecutive week of outflows.
Graphic: Fund flows into EM equities and bonds https://fingfx.thomsonreuters.com/gfx/mkt/gkvlgxqyxpb/Fund%20flows%20into%20EM%20equities%20and%20bonds.jpg
(Reporting by Gaurav Dogra and Patturaja Murugaboopathy in Bengaluru; Editing by Mark Potter)