Key facts
- Global equity funds saw inflows for the eighth consecutive week ending July 15.
- Total inflows into global equity funds reached $12.46 billion for the week.
- Strong earnings from major banks and ASML, along with cooler U.S. inflation, boosted investor sentiment.
- Europe led regional inflows with $9.49 billion, while U.S. funds experienced outflows of $4.8 billion.
- Technology sector funds attracted the largest inflows among sectors, totaling $3.37 billion.
Global equity funds experienced a sustained period of investor interest, attracting net inflows for the eighth consecutive week ending July 15. This trend was bolstered by a strong start to the corporate earnings season and data indicating cooler U.S. inflation, which reduced expectations for further Federal Reserve interest rate hikes.
Investors allocated a net $12.46 billion to global equity funds during the reported week, following substantial net buying of $48.35 billion in the preceding week, according to data from LSEG Lipper. This optimism was fueled by positive earnings reports from major Wall Street banks such as Bank of America, JPMorgan Chase, and Morgan Stanley, as well as from ASML, a key supplier in the AI chipmaking sector.
Geographically, European equity funds were the primary beneficiaries, drawing $9.49 billion in net purchases. Asian funds also saw significant inflows, amounting to $5.4 billion. In contrast, U.S. equity funds experienced net outflows totaling approximately $4.8 billion.
Within specific sectors, technology funds garnered the most attention, attracting $3.37 billion, although this represented a three-week low for the sector. Financials and healthcare funds also posted weekly inflows of $567 million and $558 million, respectively.
Beyond equities, global bond funds continued their strong performance, attracting $16.16 billion in net investments for their 15th consecutive week of inflows. Government bond funds saw their largest weekly net purchase since April 8, with $3.38 billion invested, while short-term bond funds attracted $4.17 billion.
Conversely, money market funds experienced significant net outflows of $102.53 billion, marking their largest weekly net sales since mid-April. In commodities, gold and precious-metals funds saw a reversal of recent trends, with investors buying a net $376 million, snapping an eight-week selling streak. Energy funds, however, faced net outflows of $145 million.
Emerging markets showed a revival in demand, with equity funds drawing $2.74 billion in net inflows after 11 weeks of outflows. Bond funds in emerging markets also gained traction, with net inflows of $795 million.