Global equity funds attract first capital inflow in 10 weeks

Global equity funds attracted their first weekly inflow in two-and-a-half months during the week ending January 11 on optimism about slowing inflation and China’s removal of precautionary measures related to the COVID-19 pandemic.

According to “CNBC,” Refinitiv Lipper data showed that global equity funds attracted net purchases of $5.17 billion, in the first weekly capital inflow to them since November 3.

In the details of the data, European and Asian stock funds received inflows of $7.35 billion and $1.54 billion, respectively, but investors exited with capital of $2.01 billion from US funds.

China-focused equity funds attracted inflows of $1.61 billion, the largest since July 6.

On the other hand, net weekly purchases on global bond funds amounted to $16.92 billion, which is the highest level since April 2021.

Global short-, medium-term, high-yield bond funds and government bond funds saw inflows of $3.89 billion, $3.56 billion and $1.89 billion, respectively, but inflation-insured bond funds exited $480 million.

Meanwhile, commodity funds for precious metals attracted $5 million in inflows, while energy funds received $144 million.

Data on 24,627 funds in emerging markets showed that bond funds secured $730 million in net purchases, while stock funds attracted $3.94 billion, which is the largest weekly inflow since April 2022.