Global equity funds draw inflows of $6.5 billion on rate cut hopes By Reuters

© Reuters. FILE PHOTO: Merchants work on the ground on the New York Inventory Alternate (NYSE) in New York Metropolis, U.S., February 6, 2024. REUTERS/Brendan McDermid/File Photograph

(Reuters) – International fairness funds attracted a web $6.5 billion within the seven days by March 6, pushed by weak U.S. manufacturing information and Federal Reserve policymakers’ remarks which fuelled expectations of rate of interest cuts later this yr.

This marked a second consecutive week of inflows into world fairness funds, LSEG information confirmed.

Final week, U.S. central bankers indicated that, regardless of a latest uptick in worth pressures, broader progress on inflation might pave the way in which for rate of interest cuts later this yr.

The Index reached a file excessive of 774.66 on Friday, buoyed by earlier testimonies from Fed Chair Jerome Powell, which strengthened expectations of upcoming charge cuts. By area, Asian funds attracted about $2.89 billion in the course of the week, their eighth consecutive week of web purchases. European and U.S. funds additionally reported web inflows of roughly $1.9 billion and $1.2 billion, respectively.

The expertise sector continued to attract investor curiosity, with $1.45 billion in fund inflows, marking its eighth week of web purchases.

In the meantime, the patron discretionary and industrials sectors attracted $726 million and $611 million in web investments, respectively. Against this, the monetary sector noticed web withdrawals of $834 million.

International bond funds skilled a big inflow, amassing $18.04 billion price of inflows, the most important weekly quantity since mid-April 2021.

Medium-term U.S. greenback bond funds had been notably common, attracting about $3.7 billion, the most important web influx since Might 3, 2023. Company and authorities bond funds additionally noticed inflows of $3.06 billion and $2.23 billion, respectively.

Cash market funds in the meantime, noticed $57.3 billion price of web shopping for, the most important weekly web buy in eight weeks. Amongst commodities, treasured steel funds noticed outflows for a tenth consecutive week, totalling about $788 million on a web foundation. Vitality funds additionally had $121 million of web disposals.

Rising markets had been out of favour as traders remained web sellers of debt funds for a seventh successive week. Additionally they offloaded about $1.73 billion price of fairness funds to withdraw the largest quantity since Jan. 24, information overlaying 29,724 funds confirmed.