Key insights
- Global equity funds saw a 17-month high in inflows, driven by AI optimism and strong bank earnings. US equity funds led the way, followed by European funds. Technology, industrials, and metals/mining sectors were favored. Bond fund inflows also increased, while money market funds experienced outflows. This suggests a risk-on sentiment, potentially bullish for US equities in the short term.
April 24 (Reuters) - Weekly inflows into global equity funds surged to a more than 17-month high in the week through April 22, fuelled by optimism over demand for artificial intelligence and robust first-quarter earnings from some major U.S. banks.
According to LSEG Lipper data, global equity funds attracted net weekly investments of $48.72 billion, the largest sum for a week since November 13, 2024.
Shares of TSMC, the world’s biggest contract manufacturer of advanced AI chips, and high-bandwidth memory (HBM) chip supplier SK Hynix hit record highs this week, bolstered by upbeat earnings.
U.S. equity funds drew $27.98 billion, the most in four weeks, while European and Asian funds saw net inflows of $18.41 billion and $157 million, respectively.
Sector funds attracted a net $8.22 billion, marking their largest weekly inflows in three months, led by technology, industrials, and metals and mining, which drew $6.21 billion, $1.82 billion, and $1.02 billion, respectively.
Bond fund inflows rose by nearly a third to $12.85 billion, from $9.78 billion, a week ago.
Investors pumped a net $3.13 billion into hard currency bond funds in their largest weekly net purchase since March 18. Meanwhile, outflows from short-term bond funds eased to $2.21 billion from $7.08 billion the week before.
Money market funds saw a second successive weekly outflow to the tune of $20.26 billion after the prior week’s $173.09 billion weekly net sales.
Investors extended their recent streak of net purchases in gold and other precious metals funds into a fourth successive week, investing a net $841 million in these funds.
Emerging market funds were in demand for a third straight week as investors added $4.34 billion into equity funds and $3.64 billion into bond funds, data for a combined 28,853 funds showed.