Global equity funds see robust weekly inflows on hopes of Fed rate cut
2024.12.13 08:40
(Reuters) – Global equity funds attracted inflows for an 11th successive week through Dec. 11, supported by signs that a cooling U.S. labor market and stable consumer prices might facilitate a third consecutive rate cut by the Federal Reserve this month.
Investors snapped up global equity funds worth a net $10.18 billion during the week, following about $21.19 billion worth of net purchases in the prior week, LSEG Lipper data showed.
Last week’s U.S. employment report showed a surge in job growth for November, rebounding from disruptions caused by hurricanes and strikes, but the unemployment rate increased to 4.2%, signaling a loosening labor market that could prompt the Federal Reserve to cut interest rates again this month.
U.S. equity funds continued to attract investors for a sixth consecutive week, receiving net inflows of $6.36 billion. European funds gained $3.24 billion, but Asian funds experienced a net outflow of $278 million.
Sectoral funds faced their first weekly outflow in five weeks, totaling a net $1.94 billion. Notably, healthcare, technology and consumer discretionary sectors saw outflows of $1.08 billion, $654 million and $616 million, respectively.
Global bond funds marked their 51st consecutive week of net investments, attracting $10.19 billion.
Corporate bond funds led with a robust $3.21 billion – the highest weekly inflow since September 18 – while loan participation funds recorded their 12th consecutive weekly inflow, totaling $1.32 billion.
Last week, investors liquidated $16.29 billion from money market funds, following substantial purchases of $169.16 billion the previous week.
In commodities, the energy segment experienced a net outflow of $256 million, marking its third weekly loss in four weeks, while gold and precious metal funds saw net inflows of $190 million.
Data covering 29,593 emerging market funds showed that investors withdrew $2.35 billion from equity funds for the fifth consecutive week, while bond funds saw $721 million in net sales.
