Global equity funds drew $49.23 billion in weekly inflows, their biggest since June 17, LSEG Lipper data showed
Global equity funds attracted their largest weekly inflow in three weeks in the week to July 8, as strong demand for artificial intelligence-linked technology products and cooling expectations for Federal Reserve rate hikes boosted risk appetite.
Global equity funds recorded net inflows of $49.23 billion during the week, their biggest weekly inflow since June 17, according to LSEG Lipper data.
Upbeat June manufacturing activity reports pointed to strong demand for AI-related products, including chips and computers. Expectations for robust earnings in the AI sector also supported investor sentiment.
The technology sector is forecast to report 54.2% year-on-year growth in second-quarter net income, according to LSEG data based on analysts’ average estimates.
Regional flows
US equity funds attracted $24.97 billion in inflows, their largest in three weeks. Investors also allocated $13.67 billion and $6.95 billion to European and Asian equity funds, respectively.
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The technology sector drew strong interest, with funds attracting $11.49 billion in inflows, up more than a quarter from $8.88 billion the previous week.
Financial and industrial sectors also recorded notable inflows of $1.52 billion and $789 million, respectively.
Bond, money market flows
Global bond funds attracted $31.34 billion in inflows, the largest since at least 2019.
Short-term bond funds, euro-denominated bond funds, corporate bond funds and government bond funds recorded weekly net purchases of $7.19 billion, $3.87 billion, $2.92 billion and $2.73 billion, respectively.
Investors also allocated $83.76 billion to money market funds, marking their largest weekly net purchase since June 3.
Gold and other precious metals commodity funds recorded an eighth consecutive weekly outflow, totalling $372 million.
Emerging market data covering 28,884 funds showed equity funds lost about $500 million in their 11th consecutive weekly outflow. Bond funds, however, attracted net inflows of $1.66 billion.
