Global Equity Funds Gain Inflows as US-China Tariff Tensions Ease
(Reuters) -Global equity funds attracted inflows for a second straight week through April 23, supported by signs of a potential de-escalation in the tariff war between the U.S. and China, which boosted demand for riskier assets.
According to LSEG Lipper data, global equity funds saw a net $9.11 billion inflow during the week after having witnessed a net $5.58 billion worth of net purchases in the previous week.
The Trump administration is considering lowering tariffs on Chinese imports pending talks with Beijing, a source said on Wednesday, as the U.S. noted this week that China is weighing exemptions for some American goods from its 125% tariffs.
European equity funds witnessed robust demand as they drew $8.08 billion worth of inflows following $11.79 billion in net purchases in the prior week.
Investors also snapped up $3.65 billion worth of Asian funds but ditched U.S. funds to the tune of $1.35 billion, much less than $10.44 billion in the previous week.
Sectoral equity funds, meanwhile, remained out of favor for a fourth successive week as investors pulled a net $1.6 billion out of these funds.
The financial, consumer staples and healthcare sectors saw major outflows at $1.27 billion, $425 million and $353 million, respectively.
Meanwhile, global investors bought a net $1.94 billion worth of bond funds following heavy net selling in the previous two weeks as the recent selloff in U.S. bond markets eased somewhat.
The dollar-denominated mortgage bond funds attracted a net $4.79 billion in inflows after three weekly outflows in a row. Investors also racked up $5.59 billion worth of short-term bond funds but shed a net $1.61 billion worth of high-yield bond funds.
Global money market funds, meanwhile, saw a net $15.83 billion worth of inflows after a net $113.12 billion worth of weekly selloff a week ago.
Gold and precious metals commodity funds were popular for an 11th straight week as they gained a net $676 million in net purchases.
Data covering 29,609 emerging market funds showed weekly outflows from bond funds cooled to a four-week low of $606 million. Equity funds, meanwhile, had a marginal $50 million worth of net selling.
(Reporting by Gaurav Dogra and Patturaja Murugaboopathy in Bengaluru; Editing by Shreya Biswas)
