Global Equity Fund Inflows Surge Amid U.S. Trade Optimism

Inflows into global equity funds surged once again in the week ending July 23. This marked a positive shift influenced by increasing optimism about U.S. trade agreements, better-than-anticipated U.S. economic reports, and a promising start to the corporate earnings season, which enhanced risk sentiment among investors.

Significant developments included the United States and Japan's breakthrough agreement to lower existing import tariffs on Japanese goods, reaching a friendlier rate of 15%. Investors were further buoyed by the potential resolution of U.S. import tariffs with the European Union. Encouraging earnings from TSMC and PepsiCo lifted the mood even more.

In contrast to previous weeks, net European equity fund inflows achieved an 11-week high of $8.79 billion. While Asian funds gained $1.17 billion, U.S. equity funds showed reduced outflows. The technology sector rebounded with $1.61 billion inflows, complemented by gains in the financial and industrial sectors.

(With inputs from agencies.)