(Reuters) – Global equities saw strong inflows in the week to December 25, rebounding from last week’s net selloff, boosted by a positive U.S. inflation report and relief that Washington avoided a government shutdown, which restored investor confidence at risk. inheritances.
According to LSEG data, investors poured a whopping $34.38 billion into equity funds around the world, the largest amount in six weeks, following a sell-off of $36.84 billion the previous week.
A report from the Commerce Department last Friday showed the PCE price index rose 0.1% in November, cooler than analysts expected, restoring some hope of a rate cut by the Federal Reserve next year.
US equity funds attracted $20.56 billion, marking their seventh inflow in eight weeks. Meanwhile, European and Asian currencies also saw big inflows, taking in $5.11 billion and $2.84 billion, respectively.
Equity funds in the global sector had net outflows for the third week in a row, reaching $2.48 billion. Specifically, investors poured $810 million into health care funds, $639 million into consumer discretionary funds, and $480 million into metals and mining funds.
Global bond funds recorded net sales of $1.47 billion for the second week in a row, following a streak of 51 consecutive weekly gains that ended in Dec. 11.
High-yield bond funds around the world saw their biggest outflows in eight months, with net sales reaching $2.99 billion during the week. In contrast, investors put $1.78 billion into short-term bond funds.
Investors added a total of $16.95 billion to money market funds, reversing two weeks of net sales.
In assets, gold and precious metals funds attracted $1.25 billion in inflows, marking the biggest weekly inflow in nine weeks, while energy funds saw sales totaling $212 million.
Meanwhile, data covering 29,565 emerging market funds showed that equity funds continued their trend with sales totaling $1.75 billion for the seventh week in a row, and bond funds also had net outflows totaling $957 million.
