(Reuters) – Global equity funds saw inflows for the week ended 10 August after six straight weeks of withdrawals, as investors believed the Federal Reserve might not be too aggressive in raising interest rates amid easing inflation concerns.
Global equity funds attracted $2.75 billion in their first weekly net purchase since June 22, according to Refinitiv Lipper.
CHART: Fund Flows: Global Equities, Bonds and Money Market (https://fingfx.thomsonreuters.com/gfx/mkt/dwpkrwkykvm/Fund%20flows-%20Global%20equities%20bonds%20and%20money%20market.jpg)
Data released on Wednesday showed that US consumer prices were flat in July, raising expectations of a 50 basis point hike by the US Federal Reserve at its September meeting, instead of the 75 basis point previously widely expected.
A report showing a recovery in the US services industry also helped sentiment.
US and Asian equity funds received $4.21 billion and $0.69 billion, respectively, although European funds saw outflows of $2.52 billion.
Among sector funds, consumer staples and health care gained $535 million and $389 million, respectively, but technology and financials lost $412 million and $386 million, respectively.
CHART: Fund Flows: Global Equity Sector Funds (https://fingfx.thomsonreuters.com/gfx/mkt/zjvqkbnmavx/Fund%20flows-%20Global%20equity%20sector%20funds.jpg)
Investors bought about $5 billion in global bond funds, marking a second straight weekly inflow.
Treasury funds rallied $2.25 billion net in a second weekly inflow, but investors sold short-, intermediate- and high-yield funds of $1.66 billion and $47 million, respectively.
CHART: Global bond fund flows for the week ended August 10 (https://fingfx.thomsonreuters.com/gfx/mkt/gkvlgobkkpb/Global%20bond%20fund%20flows%20in%20the%20week%20ended%20Aug%2010.jpg )
Money market funds saw outflows of $12.51 billion, the largest in six weeks.
Data for commodity funds showed energy funds attracted $101 million in net purchases, the first weekly inflow in seven weeks, but precious metals funds lost $394 million.
An analysis of 24,438 emerging-market funds found that bond funds attracted $766 million worth of purchases, while stocks saw a fourth weekly outflow of $488 million.
CHART: Fund Flows: EM equities and bonds (https://fingfx.thomsonreuters.com/gfx/mkt/xmvjombyepr/Fund%20flows-%20EM%20equities%20and%20bonds.jpg)
(Reporting by Gaurav Dogra and Patturaja Murugaboopathy in Bengaluru; Editing by Elaine Hardcastle)
Copyright 2022 Thomson Reuters.