Global equity funds recorded net inflows of $49.23 billion in the week ending July 8, the largest weekly amount since June 17, according to LSEG Lipper data. Investors' appetite for risk was supported by strong demand for technology products tied to artificial intelligence and by reduced expectations for further interest-rate hikes from the US Federal Reserve.
Technology and semiconductors driving the market
June manufacturing reports also confirmed robust demand for AI-related products, notably semiconductors and computers. Analyst consensus expects the technology sector to post an average year-on-year net profit increase of 54.2% in the second quarter, which bolstered market sentiment. Technology-focused funds attracted $11.49 billion in fresh capital, more than 25% higher than the prior week's $8.88 billion.
By region: the United States attracts the most capital
By region, US equity funds received the largest share of new money, about $24.97 billion, another three-week high. European funds took in $13.67 billion, while Asian funds received $6.95 billion during the week.
Bonds and money-market funds: significant but varied flows
Global bond funds saw $31.34 billion of new inflows, the highest weekly figure in this category since at least 2019. Within that total, short-dated bond funds recorded $7.19 billion, euro-denominated bond funds $3.87 billion, corporate bond funds $2.92 billion and government bond funds $2.73 billion of net inflows.
Money-market funds attracted $83.76 billion during the week, the largest weekly volume since June 3.
Sectors and emerging markets
Financial-sector funds recorded $1.52 billion of net inflows, while industrial-sector funds gathered $789 million. By contrast, gold and other precious-metal funds closed their eighth consecutive week of outflows, with a net $372 million leaving those funds.
Statistics covering 28,884 funds focused on emerging markets show equity funds experienced net withdrawals for the eleventh consecutive week, amounting to about $500 million recently. Emerging-market bond funds remained popular, registering $1.66 billion of net inflows.
Why it matters
Large inflows and strong interest in technology underscore investors' current preference for growth opportunities and a supportive macro backdrop, particularly in the United States. However, persistent outflows from emerging-market equities and withdrawals from gold funds signal that some investors remain cautious about certain regions and hedging assets.
Source: Reuters
The lead image is illustrative. This article is not investment advice or a recommendation.
