Global Equity Funds Record Inflows for 2nd Week in a Row

Jan 20 (Reuters) – Global equity funds recorded a weekly influx of investor funds in the week ending January 18 for the second consecutive week on hopes of lower inflation risks and a more moderate rate hike by the Federal Reserve, while fresh data suggests a reduction in consumer spending.

Data from Refinitiv Lipper showed that global equity funds received $5.24 billion in inflows for the week, slightly less than the previous week.

European equity funds raised $7.06 billion, while Asian equity funds raised $1.16 billion. US equity funds recorded a $3.13 billion outflow.

Global bond funds showed inflows for the third week in a row, receiving $13.23 billion.

Investors poured $3.74 billion into global corporate funds, with high-yield funds raising $2.1 billion. However, investment in government bond funds fell to a 12-week low of $4 million.

Global money market funds experienced their first outflow in four weeks, signaling increased risk appetite among investors.

Investors exited precious metals funds, resulting in an outflow of $222 million, their worst week of the last seven. Energy funds experienced a $62 million outflow.

Data from 24,637 emerging market funds indicated an inflow of $6.03 billion into equity funds, the highest weekly gain since at least February 2021. Emerging market bond funds also raised $1.4 billion, posting their third straight weekly gains. The original message in English is available by code

(Gaurav Dogra and Patturaja Murugabupati in Bangalore)