Advertisement

Updated January 26th, 2024 at 16:30 IST

Investors turn cautious, trim equity holdings ahead of key inflation data, Fed meet

Data from LSEG showed that global equity funds witnessed net outflow of $2.19 billion during the week, representing the smallest weekly outflow in four weeks.

Business Desk
Sensex
The Indian equity benchmarks declined on Monday on the back of weak cues Asian markets after US bond yields jumped | Image:Pixabay
Advertisement

Global investors demonstrated a cautious approach by trimming their holdings in equity funds. The move preceded a inflation report scheduled for Friday and an upcoming US Federal Reserve meeting next week, events that carry the potential to reshape expectations regarding interest-rate adjustments.

Despite this caution, the surge in global stocks managed to limit fund outflows. Optimism prevailed in the market, fuelled by robust quarterly results from Netflix and optimistic forecasts from semiconductor giants such as Taiwan's TSMC and Super Micro Computer.

Advertisement

Data from LSEG showed that global equity funds witnessed net outflow of $2.19 billion during the week, representing the smallest weekly outflow in four weeks. Notably, US and European funds saw net sales of approximately $3.04 billion and $2.12 billion, respectively. In contrast, Asian funds attracted a net buying of $2.35 billion, marking the third consecutive week of inflows.

The tech sector emerged as a highlight with a substantial $2.47 billion inflow, driven by optimism surrounding positive forecasts. This marked the sector's largest inflow since November 22, 2023. Conversely, the healthcare and energy sectors witnessed net selling, amounting to $552 million and $593 million, respectively.

Advertisement

Global bond funds saw an increased interest, garnering $9.34 billion in inflows. This marked the fifth consecutive week of positive inflows. Short-term global bond funds recorded their largest inflow since October 11, 2023, at $5.29 billion, while high-yield funds saw net purchases of $880 million.

Simultaneously, investors withdrew a net $18.27 billion from money market funds, continuing as net sellers for the second successive week.

Advertisement

Within the commodities segment, precious metal funds attracted $209 million, marking their first weekly inflow in four weeks. Energy funds also observed about $54 million in net buying.

(With Reuters inputs)

Advertisement

Published January 26th, 2024 at 16:30 IST

Your Voice. Now Direct.

Send us your views, we’ll publish them. This section is moderated.

Advertisement
Advertisement
Advertisement
Advertisement
Advertisement
Whatsapp logo