Global Equity Funds See $91.1B Inflow as Trade Tensions Ease

Global equity funds have experienced consecutive weeks of net inflows, driven by signs of easing tensions in the trade war. This development has bolstered demand for high-risk assets. According to data, global equity funds saw a net inflow of $91.1 billion in the week ending April 23, following a net inflow of $55.8 billion the previous week. This trend is indicative of a broader shift in investor sentiment, as concerns over trade policies and potential economic slowdowns have begun to subside.

European equity funds have seen strong demand, attracting $80.8 billion in net inflows this week, following a net inflow of $117.9 billion the previous week. Investors have also shown interest in Asian funds, with a net inflow of $36.5 billion. However, there has been a net outflow of $13.5 billion from U.S. equity funds, a significant decrease from the previous week's outflow of $104.4 billion.

Sector-specific equity funds have seen a net outflow for the fourth consecutive week, with investors withdrawing a total of $16 billion. The most significant outflows were seen in the financial, consumer staples, and healthcare sectors, with net outflows of $12.7 billion, $4.25 billion, and $3.53 billion, respectively. This trend suggests a shift in investor preferences away from these sectors.

Despite the outflows from sector-specific equity funds, global investors have shown a renewed interest in bond funds. After experiencing significant net outflows in the previous two weeks, bond funds saw a net inflow of $19.4 billion this week. This shift is likely due to the recent stabilization in the U.S. bond market, which has eased concerns about potential losses in the fixed-income sector.

Dollar-denominated mortgage-backed securities funds have seen a net inflow of $47.9 billion after three consecutive weeks of outflows. Investors have also increased their holdings in short-term bond funds by $55.9 billion, while reducing their exposure to high-yield bond funds by $16.1 billion. This trend suggests that investors are seeking safer havens while still maintaining exposure to growth opportunities.

Global money market funds have also seen a net inflow of $158.3 billion this week, following a net outflow of $113.12 billion the previous week. This trend indicates that investors are increasingly looking for liquidity and stability in their portfolios.

Gold and precious metals commodity funds have seen a net inflow for the 11th consecutive week, with a net inflow of $6.76 billion. This trend reflects ongoing concerns about inflation and economic uncertainty, as investors seek safe-haven assets.

Emerging market funds have seen a reduction in net outflows, with bond funds experiencing a net outflow of $6.06 billion, the lowest level in four weeks. Stock funds in emerging markets have seen a net outflow of $50 million, indicating a cautious approach by investors in this sector.