Refinitiv Lipper: $4.9 Billion Outflow from Global Equity Funds
Refinitiv Lipper reported that global equity funds saw $4.9 billion in outflows. U.S. equity funds experienced $5.7 billion in outflows, while Asia and European funds had modest inflows of $1.1 billion and $0.59 billion, respectively.
Financial Sector Leads Outflows with $1.5 Billion
Financial sector funds led with outflows worth $1.5 billion, while real estate and energy sector funds saw net sales of $446 million and $376 million, respectively.
U.S. Debt Ceiling Deadlock Threatens Economy
Analysts warned that the ongoing dispute between Republicans and Democrats over the debt limit ceiling could harm the U.S. economy. A debt default triggered by the standoff could erase billions from equities.
U.S. Inflation Data Raises Concerns for Analysts
Although U.S. inflation data released on Wednesday indicated a weakening of price pressures, analysts remained cautious. UBS Chief Investment Officer Mark Haefele advised against expecting another equity market outperformance.
Global Bond Funds See 3rd Consecutive Week of Inflows
Global bond funds attracted $3.4 billion in the week, marking its third consecutive inflow. Government bond funds received $3.01 billion, while high-yield and inflation-linked bond funds saw outflows of $1.5 billion and $264 billion, respectively.
Money Market Funds Gain $10.8 Billion Amid Uncertainty
Global money market funds continued to attract inflows for a third consecutive week, receiving $10.8 billion. Kendall Dilley of Vineyard Global Advisors expects strong money market fund flows until the U.S. debt ceiling issue is resolved and confidence in regional bank stability returns.
Emerging Market Funds Show Mixed Results
Data for 23,973 emerging market funds revealed a net inflow of $838 million for equity funds but a net outflow of $622 million for bond funds.