Key facts
- Global equity funds attracted $10.51 billion in inflows for the week ending July 22.
- European equity funds saw inflows of $10.29 billion, driven by strong earnings expectations.
- U.S. equity funds experienced net outflows of $7.34 billion.
- Technology sector funds attracted $2.12 billion in inflows.
- Global bond fund inflows decreased to $3.34 billion, a 16-week low.
Global equity funds experienced their ninth consecutive week of inflows, attracting $10.51 billion in the week ending July 22, according to LSEG Lipper data. This sustained demand reflects investor optimism surrounding a robust earnings season, despite geopolitical tensions in the Middle East and recent weakness in semiconductor stocks.
European equity funds were particularly strong, drawing $10.29 billion in net purchases, buoyed by expectations of the fastest quarterly profit growth for European blue-chip companies in over three years. Companies like Randstad, TotalEnergies, and Repsol reported positive results.
In contrast, U.S. equity funds saw outflows totaling $7.34 billion. Asian funds attracted $4.5 billion in inflows. Sector-specific funds also saw positive movement, with technology attracting $2.12 billion, financials $1.7 billion, and healthcare $1.36 billion.
Global bond funds experienced a significant drop in inflows, reaching a 16-week low of $3.34 billion, partly due to rising crude oil prices and inflation concerns. Money market funds continued to see outflows, posting $40.97 billion in redemptions for the second week. Commodity funds saw inflows into energy ($166 million) and gold ($1.46 billion).
Emerging market equity funds also attracted inflows, with $3.96 billion entering the sector for the second consecutive week, while bond funds in the emerging markets recorded modest outflows.