(Reuters) -Global equity fund inflows cooled significantly in the week to November 12 as worries about stretched technology valuations and signs of softening U.S. labour market conditions fuelled risk
Global Investors Cautious as Tech Valuations and US Jobs Worry
Investor Sentiment and Market Trends
(Reuters) -Global equity fund inflows cooled significantly in the week to November 12 as worries about stretched technology valuations and signs of softening U.S. labour market conditions fuelled risk-off sentiment.
Equity Fund Inflows Decline
According to LSEG Lipper data, global investors bought just $4.11 billion worth of equity funds during the week, a sharp reduction from $22.27 billion worth of net purchases the prior week.
Sector Performance Overview
Concerns intensified after a private report suggested the U.S. economy shed jobs in October, although the official figures remain unavailable due to the weeks-long government shutdown.
Bond Fund Trends
A pullback in major technology stocks and SoftBank Group’s disclosure that it sold $5.83 billion worth of Nvidia shares also weighed on sentiment.
Emerging Markets Insights
Asian equity funds received $3.04 billion, the fifth weekly inflow in a row, and led regional flows. U.S. funds also had a net $1.15 billion worth of purchases while European funds saw outflows of $1.87 billion.
The technology sector attracted $2.59 billion, still the smallest amount in four weeks. Investors also added healthcare and industrial sector funds of $915.2 million and $326 million, respectively.
Global bond funds drew inflows for the 30th week in a row, amounting to $13.11 billion on a net basis.
Short-term bond funds saw an uptick in demand as inflows surged to a seven-week high of $5.77 billion. Euro-denominated bond funds and corporate bond funds also received notable inflows of $2.31 billion and $1.9 billion, respectively.
Gold and precious metal commodity funds witnessed a renewal in demand following two successive weekly outflows as these funds gained $1.64 billion worth of inflows.
Emerging market funds' data for 28,738 funds showed that equities received $2.17 billion, a third successive weekly inflow, while bond funds had a third consecutive outflow, worth $1.45 billion in the most recent week.
(Reporting by Gaurav Dogra; Editing by Andrew Heavens)
