Feb 24 (Reuters) - Investors withdrew a large amount of
money out of global equity funds in the seven days ended Feb.
22, spooked by prospects of a longer-than-anticipated tighter
monetary policy from the Federal Reserve following stronger
economic data coming out of the U.S.
Data released during the period showed upbeat U.S. business
activity in February and a drop in weekly jobless claims,
cementing views that the Fed would keep raising interest rates
for longer.
Investors offloaded a net $6.43 billion worth of global
equity funds during Feb. 16-22 after $1.47 billion worth of net
selling during Feb. 9-15, Refinitiv Lipper data showed.
Investors exited U.S., European and Asian equity funds worth
$6.73 billion, $750 million and $540 million, respectively,
during the seven days ended Feb. 22.
Healthcare and technology sectors saw $737 million and $655
million worth of outflows, while investors put in about $312
million into consumer staples.
Global bond fund inflows were valued at $2.11 billion, the
smallest in eight weeks.
Government bond funds saw a surge in demand as they received
$6.85 billion, the biggest amount in seven months. Investors
also drew $1.75 billion worth of short- and medium-term bond
funds, but disposed of high-yield funds worth $7 billion.
Meanwhile, global money market funds had $7.88 billion worth
of net selling, marking their third straight week of outflows.
Among commodity funds, investors bought $163 million worth
of energy funds for a fourth straight week of net purchases, but
exited $369 million worth of precious metal funds.
Data for 23,767 emerging market funds showed equity funds
secured their seventh weekly inflow, worth $2.52 billion, while
bond funds faced $1.08 billion worth of outflows.
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Fund flows: Global equities, bonds and money market funds Fund flows: Global equity sector funds Global bond fund flows in the week ended Feb 22 Fund flows: EM equities and bonds ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
(Reporting by Gaurav Dogra and Patturaja Murugaboopathy in
Bengaluru; Editing by Shounak Dasgupta)
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