Record Global Equity Inflows Driven by Growing Bets on Rate Cuts
Global equity funds recorded their strongest weekly net inflows in nearly four months, reflecting a renewed appetite for risk as major indices approached historic highs.
The momentum was fueled by easing inflation pressures in the United States and rising expectations that the Federal Reserve may begin cutting interest rates later this year.
According to LSEG data, global equity funds attracted $45.6 billion in the week ending January 14, the highest level since early October, while the MSCI index added about 2.4 percent since the start of the year and continued to hit fresh records.
U.S.
funds led the trend with inflows of $28.2 billion, followed by Europe at $10.2 billion and Asia at $3.9 billion.
Technology, industrial and mining shares saw the strongest demand, while fixed-income markets also remained attractive with $19 billion flowing into bond funds.
Money-market funds, however, witnessed outflows of more than $67 billion after heavy purchases in previous weeks.
Emerging markets benefited as well, drawing $5.7 billion into equity funds and $2.1 billion into bonds, underscoring broad optimism despite ongoing geopolitical risks and investor focus on the upcoming U.S.
earnings season.
The momentum was fueled by easing inflation pressures in the United States and rising expectations that the Federal Reserve may begin cutting interest rates later this year.
According to LSEG data, global equity funds attracted $45.6 billion in the week ending January 14, the highest level since early October, while the MSCI index added about 2.4 percent since the start of the year and continued to hit fresh records.
U.S.
funds led the trend with inflows of $28.2 billion, followed by Europe at $10.2 billion and Asia at $3.9 billion.
Technology, industrial and mining shares saw the strongest demand, while fixed-income markets also remained attractive with $19 billion flowing into bond funds.
Money-market funds, however, witnessed outflows of more than $67 billion after heavy purchases in previous weeks.
Emerging markets benefited as well, drawing $5.7 billion into equity funds and $2.1 billion into bonds, underscoring broad optimism despite ongoing geopolitical risks and investor focus on the upcoming U.S.
earnings season.
