Global equity funds drew their first weekly inflow in 10 weeks in the week to Jan. 11 on hopes of easing inflation and expectations that China’s re-opening would boost global economies.
Refinitiv Lipper data showed global equity funds attracted $5.17 billion in net purchases, for their first weekly inflow since Nov. 2.
U.S. consumer prices unexpectedly fell for the first time in more than 2-1/2 years in December, amid declining prices for gasoline and other goods, suggesting that inflation was now on a sustained downward trend.
European and Asian equity funds received $7.35 billion and $1.54 billion worth of inflows, but investors exited U.S. funds worth $2.01 billion.
Equity funds focused on China accumulated $1.61 billion worth of inflows, the biggest since July 6.
Among equity sector funds, industrials, financials, and consumer discretionary saw $1.15 billion, $574 million and $479 million, respectively, in inflows. Still, tech suffered a 10th weekly outflow at $365 million.
Weekly net purchases in global bond funds, at $16.92 billion, were the highest since April 2021.
Global short- and mid-term, high-yield, and government bond funds had inflows of $3.89 billion, $3.56 billion and $1.89 billion, respectively, but inflation-protected funds lost $480 million in outflows.
Global investors were also net buyers in money market funds for a third straight week, with net purchases worth $13.37 billion.
Data for commodity funds showed precious metals got a marginal $5 million, while energy funds received $144 million and marked a second weekly inflow.
Data for 24,627 emerging market (EM) funds showed, bond funds secured $730 million in net buying, while equity funds drew $3.94 billion, the biggest weekly inflow since April 2022.