Global equity funds drew a net $21.15 billion in the week ended August 5, an 11th straight week of inflows, as strong corporate earnings and cooling crude oil prices lifted investor appetite for risk. Europe led regional inflows while U.S. funds saw outflows, and bond and money market funds also drew fresh cash.
Global equity funds pulled in $21.15 billion in net inflows for the week ended August 5, marking an 11th consecutive week of gains, according to LSEG Lipper data cited by Reuters. That followed roughly $27.72 billion in net purchases the previous week. Optimism about a strong earnings season and cooling crude oil prices boosted investors' appetite for risk assets.
Earnings beat expectations broadly
Amazon reported its strongest cloud growth in more than four years last week. Caterpillar, widely viewed as a bellwether for the global industrial economy, and Palantir Technologies posted strong results earlier this week. Earnings from around 808 MSCI World constituent companies that have reported so far show combined profits rose 40.9% from a year earlier, with about 75% beating analysts' forecasts.
Europe draws the largest regional inflow
European equity funds attracted $12.52 billion, the largest weekly inflow since July 8, while Asian funds recorded $8.15 billion in inflows. U.S. funds, however, bucked the trend with about $1.58 billion in outflows.
Among sectoral funds, inflows into technology funds eased to a six-week low of $1.44 billion. Industrials, consumer discretionary and healthcare funds recorded net purchases of $1.08 billion, $710 million and $653 million, respectively.
Bond and money market funds also rebound
Investors added a net $12.27 billion to global bond funds, their largest weekly net purchase in three weeks. High-yield funds attracted $3.66 billion, the largest weekly inflow in five weeks, while short-term bond funds and loan participation funds recorded inflows of $3.43 billion and $915 million, respectively.
Money market funds attracted net inflows of $57.48 billion, ending a three-week run of net outflows. Emerging-market equity funds gained momentum too, with weekly inflows climbing to a more than five-month high of $9.26 billion, data covering 28,959 funds showed.
Source: Investing.com
Trading involves risk.
Risk Disclaimer
