Global equity funds receive first weekly inflow in 10 weeks

(Repeat message from Jan 13)

Jan 15 (Reuters) – Global equity funds recorded their first weekly inflow in the week ending January 11, on hopes that inflation will ease and China’s reopening will boost the global economy.

Global equity funds raised a net $5.17 billion, recording their first weekly inflow since Nov. 2, according to Refinitiv Lipper.

US consumer prices fell on a monthly basis for the first time in more than two and a half years in December, driven by cheaper gasoline and other commodities, indicating a steady downward trend in inflation.

European and Asian equity funds raised $7.35 billion and $1.54 billion, respectively, while US equity funds withdrew $2.01 billion.

China-focused equity funds received $1.61 billion in investor money, the highest since July 6.

In separate stock sectors, industrial, financial and consumer attracted $1.15 billion, $574 million and $479 million, respectively. However, tech stocks suffered a 10th consecutive week of losses, losing $365 million in the week to January 11.

Global bond funds have raised $16.92 billion, the biggest weekly increase in holdings since April 2021.

Inflows to global short-term, medium-term, high-yield and government bond funds totaled $3.89 billion, $3.56 billion and $1.89 billion, respectively, but inflation-protected funds lost $480 million.

Global investors flocked to money market funds for the third week in a row, with net purchases of $13.37 billion.

Commodity fund data showed that investments in precious metals funds added a modest $5 million, while energy funds gained $144 million and posted their second weekly gain.

In emerging markets, bond funds received $730 million in net purchases, while equity funds raised $3.94 billion, the biggest weekly inflow since April 2022, data from 24,627 EM funds showed.

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(Gaurav Dogra and Patturaja Murugabupati)