Home ›› 31 Oct 2022 ›› Stock
Global equity funds attracted money inflows in the week ended Oct 26, bolstered by expectations the Federal Reserve would slow its pace of rate hikes to counter the economic slowdown.
According to Refinitiv Lipper data, investors bought a net $7.8 billion worth of global equity funds in the week, after ditching them in the previous nine weeks.
US equity funds obtained $7.9 billion, while Asian equity funds received $2.1 billion. On the other hand, European equity funds faced net sales of $2.3 billion during the week, the data showed.
US business activity contracted for a fourth straight month, data on Monday showed, suggesting that the Fed’s rate increases have softened the economy, which in turn raised hopes that the central bank could begin slowing the pace of the hikes.
Global stock markets were also buoyed this week after the Bank of Canada delivered a smaller-than-expected interest rate hike and said it was getting closer to the point where rate increases could end.
However, lingering worries over an economic recession were evident, as investors put a huge amount of money in safer money market funds.
The data showed global money market funds received inflows worth $18.6 billion, its fourth consecutive weekly inflow.
