Global Equity Funds Weekly Inflows

(Reuters) – Global equity funds experienced their largest weekly inflows in three weeks for the period ending September 3. This surge was driven by increasing expectations of a Federal Reserve rate cut this month and a favorable antitrust ruling for Alphabet that boosted market sentiment.

Investors contributed a net $10.65 billion to global equity funds, marking the largest weekly purchase since August 13, according to data from LSEG Lipper.

Signs of a cooling U.S. labor market along with dovish comments from Fed officials have strengthened expectations for policy easing. Markets are currently pricing in a 99.7% probability of a quarter-point Fed rate reduction this month, as reported by CME’s Fed Watch tool.

By Region

• European equity funds attracted $3.85 billion, an increase from $1.32 billion the previous week.
• Asian funds brought in $3.3 billion.
• U.S. equity funds saw net inflows of $2.42 billion.

Sector Allocations

Technology funds led the allocations with $1.87 billion, the highest weekly intake since August 13. Additionally, financials drew $1.16 billion in inflows, and gold and precious metals funds garnered $1.07 billion.

Fixed Income

Fixed income investments remained favorable, with global bond funds reporting a 20th consecutive week of net inflows totaling $18.74 billion. Notably, euro-denominated bond funds attracted $2.61 billion, the most since August 13. Corporate bond funds gained $2.13 billion, while short-term bond funds added $1.82 billion.

Money Market Funds

Flows into money market funds surged to a four-week high, totaling $57.59 billion in net new money.

Commodity Funds

Commodity funds related to gold and precious metals recorded $5.2 billion in inflows, the highest weekly total since at least November 2021.

Emerging Markets

In emerging markets, equity funds garnered a net $1.05 billion in inflows, the highest since July 30. Moreover, investors purchased bond funds amounting to a net $2 billion, based on data from 29,699 funds.