GRAPHIC-Global equity funds see massive weekly outflows on Fed rate worries

Kitco Media
By Reuters
Published:
Updated:
Reuters
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. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ 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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