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Global equity funds suffer seventh straight week of outflows

June 5, 2023By Reuters

June 5 (Reuters) – Global equity funds saw a seventh straight week of outflows in the seven days to May 31 on global economic slowdown concerns after weaker readings from China and major European countries.

Investors disposed of a net USD 4.55 billion of global equity funds during the week, Refinitiv Lipper data showed, compared with a weekly withdrawal of about USD 3.54 billion a week ago.

Data showing a recession in Germany in the first quarter and contracting factory activity in China in May hit appetite for risk assets. European shares were hit hard as the pan-European STOXX 600 index dropped to a two-month low last week.

European equity funds saw USD 3.4 billion worth of net selling, while Asian funds had withdrawals of USD 820 million with China losing a net USD 425 million in a third straight week of outflows.

Meanwhile, US equity drew USD 1.22 billion in net purchases, marking their first weekly inflow in 10 weeks.

By sector, investors sold global consumer discretionary, healthcare and financial sector funds of USD 727 million, USD 451 million and USD 418 million respectively. Technology had inflows of USD 1.08 billion in a fourth straight week of net buying.

Meanwhile, government bond funds and money market funds received USD 2.37 billion and USD 16.61 billion worth of inflows respectively, amid the risk-averse tone in the markets.

During the week, combined inflows into global bond funds were a net USD 4.04 billion in an eleventh straight week of net purchases.

Among commodity funds, energy funds received USD 143 million in their first weekly inflow in three weeks, but precious metal funds saw USD 226 million worth of outflows during the week.

Data for 23,954 emerging market funds showed investors sold a net USD 454 million worth of equity funds, while withdrawing USD 355 million from bond funds in a sixth successive week of net selling.

(Reporting by Gaurav Dogra and Patturaja Murugaboopathy in Bengaluru; Editing by Alexander Smith)


This article originally appeared on reuters.com

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