March 27 (Reuters) - Global equity funds attracted their biggest weekly inflow in nearly 2-1/2 months in the week through March 25 after U.S. President Donald Trump delayed strikes on Iranian energy
Global Equity Funds Attract Largest Inflows in Over Two Months Amid Iran Hopes
Weekly Fund Flows and Market Reactions
Equity Fund Inflows Surge on Geopolitical Developments
March 27 (Reuters) - Global equity funds attracted their biggest weekly inflow in nearly 2-1/2 months in the week through March 25 after U.S. President Donald Trump delayed strikes on Iranian energy infrastructure, raising hopes of a temporary de-escalation and easing oil shock fears.
Investors acquired a net $37.77 billion of global equity funds in their largest weekly net purchase since February 18 after a two-week selling streak, LSEG Lipper data showed.
Regional Fund Flows
They bought a net $37.24 billion of U.S. equity funds as they halted a three-week selling trend. Asian funds also saw a net $5.23 billion weekly inflow, but European funds suffered outflows of $7.52 billion.
Market Volatility and Investor Sentiment
Global equities, however, tumbled around 1.6% on Thursday on Iran's denial of any talks with the U.S., deepening doubts about the chance of a quick ceasefire in the nearly one-month-long war in the Middle East.
Expert Insights
Mark Haefele, chief investment officer at UBS Global Wealth Management, said investors should be cautious about expecting a swift resumption of energy flows through the Strait of Hormuz, though he did not foresee significant or lasting economic damage in the base case.
"This means long-term investors with well-diversified portfolios should stay invested," UBS's Haefele said.
Bond and Commodity Fund Movements
Demand for debt-linked funds cooled to the lowest in nearly three months as investors poured just $2.53 billion into global bond funds.
Bond Fund Segment Trends
High-yield and euro-denominated bond fund segments saw significant outflows of $4.75 billion and $2.11 billion, respectively, but investors pumped a record $11.1 billion into short-term bond funds.
Money Market and Commodity Funds
Investors exited roughly $64.78 billion worth of money market funds as they ended an eight-week-long trend of net purchases.
Gold and precious metals commodity funds faced outflows for a fourth week, to the tune of $3.14 billion.
Emerging Market Fund Activity
Emerging market funds witnessed selling pressure for a third week as investors withdrew $2.78 billion from equity funds and $1.73 billion from bond funds, data for a combined 28,796 funds showed.
Reporting Credits
(Reporting by Gaurav Dogra; with additional reporting by Patturaja Murugaboopathy in Bengaluru; Editing by Andrew Heavens)
