Global money market funds draw biggest weekly inflow in 4-1/2 months

(Reuters) – Global money market funds attracted robust inflows in the week to Aug. 9, reflecting investor caution ahead of U.S. inflation readings and as Chinese economic data remained weak.

Investors ploughed $73.17 billion into money market funds in their biggest weekly net purchase since March 22, data from Refinitiv Lipper showed.

Inflation data released on Thursday showed U.S. consumer prices increased moderately in July, boosting expectations that the Federal Reserve will leave interest rates unchanged next month.

Weak economic data from China, where exports and imports contracted in July, also affected risk sentiment.

U.S. money market funds attracted a net $40.88 billion in inflows while in Europe and Asia net inflows stood at $23.4 billion and $13.15 billion, respectively.

Higher-risk equity funds suffered $11.71 billion worth of net selling, the biggest weekly outflow since June 21.

Investors exited metals & mining, financials and tech sector funds by around a net $891 million, $554 million and $524 million, respectively, while healthcare drew about $1.39 billion in net inflows.

Global bond funds were in demand for a seventh successive week, attracting a net $7.04 billion.

Global corporate bond funds drew about $1.16 billion and government bond funds a net $2.71 billion, the biggest amount since July 12.

Among commodity funds, precious metal funds suffered an 11th weekly outflow, of about $810 million, and a net $163 million left energy funds.

Data for 24,043 emerging market funds showed that investors placed about $264 million into equity funds in a fifth straight week of net buying. Meanwhile, bond funds faced their biggest weekly net outflow in nine months at a net $1.74 billion.

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