(Refiles to fix typographical error in headline) Jan 23 (Reuters) - Investments in global equity funds shrank in the week to January 21 as U.S. President Donald Trump's threats of reigniting a trade
Global Equity Fund Inflows Decline Amid Geopolitical Tensions
Impact of Geopolitical Factors on Equity Funds
(Refiles to fix typographical error in headline)
Recent Trends in Equity Fund Investments
Jan 23 (Reuters) - Investments in global equity funds shrank in the week to January 21 as U.S. President Donald Trump's threats of reigniting a trade dispute with Europe over Greenland curbed investor appetite.
Bond Fund Performance and Trends
According to LSEG data, investors bought global equity funds worth a net $9.19 billion during the week - a marked decline from the previous week's $45.57 billion net purchases.
Sector-Specific Inflows and Outflows
Trump, however, stepped back from his tariff threats against eight European countries on Wednesday and ruled out seizing Greenland by force.
U.S. equity funds shrank by $5.26 billion as outflows partly reversed an inflow of $28.17 billion, received in the previous week.
Investors, meanwhile, purchased European and Asian equity funds of $10.22 billion and $3.89 billion, respectively in the most recent week.
"Strategically, we believe diversification across regions and asset classes is all the more important in a polarised world, where risks are higher and outcomes less predictable," said Mark Haefele, chief investment officer at UBS Global Wealth Management.
At an early stage of the fourth-quarter earnings season, LSEG data shows that global large- and mid-cap companies are expected to report earnings growth of 16.44% for the last quarter.
Among equity sectors, the financials and metals and mining sector funds were notable for inflows of $2.36 billion and $2 billion, respectively.
Investors, meanwhile, added a net $12.52 billion to bond funds, extending their recent buying streak into a third successive week.
They bought dollar-denominated medium-term bond funds of a net $2.14 billion and euro-denominated bond funds of approximately $1.6 billion.
Money market funds underwent a second successive weekly outflow, amounting to a net of $35.02 billion.
The gold and precious metals commodity funds segment drew $1.96 billion worth of weekly net investments, the 10th weekly inflow in 11 weeks.
In emerging markets, investors acquired equity funds of $7.6 billion, the largest amount for a week since October 2024. They also invested $1.42 billion into bond funds, data for a combined 28,718 funds showed.
(Reporting by Gaurav Dogra; editing by Barbara Lewis)
