Investors Flee Global Equity Funds Amid Record Market Highs
For a second consecutive week, global equity funds experienced outflows as investors took profits near record market highs, with $20.87 billion divested. The outflux was driven by cautiousness ahead of U.S. economic reports. Meanwhile, technology saw significant withdrawals while industrial sectors gained inflows, amid cooling demand for debt funds.
In a clear sign of investor caution, global equity funds suffered their second consecutive week of outflows, totaling $20.87 billion, as traders booked profits near record market highs. The mass withdrawal was largely attributed to looming U.S. economic output and inflation reports.
The MSCI World Index continued its upward momentum, reaching a new peak for the fourth consecutive day amid optimism sparked by a potential ceasefire between Israel and Iran. However, U.S. equity funds were not immune to the trend, experiencing their largest three-month weekly withdrawal at $20.48 billion, with European funds also registering outflows.
In spite of this, Asian funds bucked the trend with inflows of $857 million. Meanwhile, the technology sector bore the brunt of investor retreat, while the industrial sector continued to attract funds, marking the 11th week of consecutive inflows.
(With inputs from agencies.)
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