Global equity funds experienced outflows of $15.52 billion in the week ending September 9, driven by a surge in oil prices and persistent inflation fears. U.S. equity funds led the withdrawals with $32.27 billion in net sales, as investors worried about potential Federal Reserve interest rate hikes.
Rising oil prices and persistent inflation fears are prompting investors to pull money from equities, increasing concerns about potential interest rate hikes by the Federal Reserve and impacting broader market sentiment.
Global equity funds experienced significant outflows totaling $15.52 billion in the week ending September 9, marking the largest such withdrawal since March 18. This trend was primarily driven by substantial net sales of $32.27 billion in U.S. equity funds, according to data from LSEG Lipper. The outflows reflect heightened investor concerns over inflation, fueled by a surge in oil prices and firming U.S. producer price data. Brent crude oil reached a four-month high of $109.97 a barrel on Friday, surpassing the $100 threshold earlier in the week. This price increase has intensified worries that inflation will remain elevated, potentially prompting major central banks, including the Federal Reserve, to consider further interest rate hikes. In contrast to U.S. equities, European and Asian equity funds saw net inflows of $11.16 billion and $3.03 billion, respectively. Sectoral funds attracted $2.92 billion, with technology and financials leading the way. Global bond funds attracted $8.95 billion, the smallest weekly inflow since late July, while investors added $10.72 billion to money market funds. Commodity funds saw mixed results, with gold and precious metals funds experiencing net sales of $537 million, while energy funds attracted $211 million. Emerging markets recorded net sales of $1.56 billion, ending an eight-week streak of inflows.