For the week ending January 14, global equity funds recorded their largest weekly net purchases in 15 weeks, as investors propelled global stock markets near historic highs, extending last year's rally and temporarily setting aside concerns over the global economy and geopolitics. Easing inflationary pressures in the United States, coupled with strengthened expectations for interest rate cuts later this year, further bolstered the stock markets. According to LSEG Lipper data, global equity funds attracted a net inflow of $45.59 billion for the week, marking the highest level since the week of October 1 last year, which saw net inflows of $49.13 billion. The MSCI World Index, which surged 20.6% last year, hit new highs during the week and has gained approximately 2.4% year-to-date. A report from the U.S. Labor Department on Tuesday showed a moderate increase in core CPI for December, further cementing market expectations that the Federal Reserve might cut rates later this year. U.S. equity funds led regional inflows, attracting $28.18 billion for the week, their highest weekly intake in two and a half months. European and Asian equity funds saw net inflows of $10.22 billion and $3.89 billion, respectively. Sectors such as technology, industrials, and metals & mining were particularly favored, with weekly net inflows of $2.69 billion, $2.61 billion, and $1.88 billion, respectively. Global bond funds recorded a net inflow of $19.03 billion for the week, largely unchanged from the previous week's $19.12 billion. Short-term bond funds and Euro-denominated bond funds attracted net inflows of $2.23 billion and $2 billion, respectively. Loan participation funds and high-yield bond funds also saw net inflows of $1 billion each. Money market funds experienced a net outflow of $67.15 billion, as investors partially redeemed a total of $250 billion in net investments over the past two weeks. Gold and precious metals commodity funds attracted a net inflow of $1.81 billion, marking the ninth week of net purchases for investors in the past ten weeks. Emerging market assets were highly sought after, with investors pouring $5.73 billion into emerging market equity funds, the highest weekly amount since October 2024, while also making net purchases of $2.09 billion in bond funds. The above data covers 28,701 funds.
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