FILE PHOTO: A street sign for Wall Street is seen outside the New York Stock Exchange (NYSE) in New York City, New York, U.S., July 19, 2021. REUTERS/Andrew Kelly/File Photo
(Reuters) – Global equity funds drew their first weekly inflow in four weeks in the seven days to March 8 after strong consumption boosted the service sector in some major economies, easing worries over a recession.
Still, expectations for further rate hikes by the Federal Reserve to curb inflation capped inflows.
Data from Refinitiv Lipper showed global equity funds obtained inflows worth a net $2.36 billion in the week to March 8, the most since Feb. 1.
Graphic: Fund flows: Global equities, bonds and money market https://fingfx.thomsonreuters.com/gfx/mkt/movakqagxva/Fund%20flows-%20Global%20equities%20bonds%20and%20money%20market.jpg
Investors’ appetite for riskier assets increased as data from the U.S., China and the euro zone showed strong demand for services in February.
But global equities came under selling pressure on Friday after a startup-lender Silicon Valley Bank flagged higher-than-expected “cash burn” from clients, falling deposits and rising costs of capital, triggering fears of banking-system stress.
European equity funds attracted a net $4.76 billion worth of inflows, but U.S. and Asian funds were out of favour with $1.23 billion and $760 million in net disposals.
Among sector funds, industrials and financials received inflows of $516 million and $339 million respectively, while the healthcare sector recorded $914 million in outflows.
Graphic: Fund flows: Global equity sector funds https://fingfx.thomsonreuters.com/gfx/mkt/zdvxdxbmyvx/Fund%20flows-%20Global%20equity%20sector%20funds.jpg
Global bond funds attracted inflows for a 10th straight week as they received $5.72 billion net.
Global government bond funds received $3.77 billion in a fourth straight week of inflows, but high-yield and short- and medium-term bond funds had outflows of $168 million and $132 million, respectively.
Graphic: Global bond fund flows in the week ended March 8 https://fingfx.thomsonreuters.com/gfx/mkt/gdvzqmlxqpw/Global%20bond%20fund%20flows%20in%20the%20week%20ended%20March%208.jpg
At the same time, money market funds secured inflows worth $15.39 billion for a second straight week of net buying.
Among commodity funds, investors exited precious metal funds for a third straight week, removing $649 million, while withdrawing a marginal $89 million from energy funds.
Data for 23,826 emerging market funds showed equity funds secured a ninth weekly inflow worth $1.35 billion. Investors also purchased a net $367 million in bond funds after three weeks of net selling in a row.
Graphic: Fund flows: EM equities and bonds https://fingfx.thomsonreuters.com/gfx/mkt/znpnbxawepl/Fund%20flows-%20EM%20equities%20and%20bonds.jpg