Global equity funds attracted their smallest weekly inflows in four weeks during the week through May 7, with just $856 million in net purchases. This marked a significant decrease compared to the $6.13 billion in inflows seen the previous week. Concerns about the impact of tariffs on the global economy and anticipation of upcoming U.S.-China trade talks weighed heavily on investor sentiment.
European equity funds continued to see strong demand, with net inflows of $12.81 billion, marking the fourth consecutive week of robust investment. Meanwhile, Asian equity funds also saw positive inflows of $3.32 billion. In contrast, U.S. equity funds experienced outflows for the fourth week in a row, with a net withdrawal of $16.22 billion.
Sector-specific funds experienced net outflows for the ninth consecutive week, totaling $2.6 billion. The financial sector led the way with $1.19 billion in outflows, followed by the metals and mining sector, which saw a net sale of $478 million.
On a positive note, global bond funds saw a resurgence in popularity, attracting net inflows of $11.4 billion, the highest in nine weeks. Dollar-denominated bond funds, in particular, saw a strong revival with $4.33 billion in net purchases, the largest amount in eight weeks. Additionally, global short-term and high-yield bond funds saw net inflows of $1.91 billion and $1.29 billion, respectively.
Global money market funds also experienced a significant boost, drawing in $66.3 billion, the largest weekly inflow since February 5. However, gold and precious metal commodity funds faced a second consecutive weekly outflow, losing $655 million.
In emerging markets, equity funds saw net inflows of $1.48 billion, while bond funds gained $1.56 billion, marking the second week of consecutive positive inflows in both segments.
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