May 17 (Reuters) – Global equity funds experienced strong demand for the third consecutive week, in the seven days to May 15, bolstered by a softer U.S. jobs report and lower-than-expected inflation figures, which increased expectations that the Federal Reserve may begin cutting rates this year.
Investors purchased a net $10.27 billion worth of global equity funds during the week after about $12.54 billion worth of net purchases a week ago, data from LSEG revealed.
Wednesday’s data showing a cooling in U.S. consumer prices led markets to quickly anticipate at least two rate cuts this year. However, the enthusiasm diminished later as a recent report indicated a still-tight labor market, and central bankers remained cautious about inflation.
U.S. equity funds secured a substantial $5.78 billion, the largest weekly inflow in eight weeks. European and Asian funds, meanwhile, drew $3.22 billion and $1.37 billion, respectively, in inflows.
Among sectoral funds, the industrial sector accumulated about $732 million, the largest weekly inflow in seven weeks.
Financials and utilities also added $412 million and $348 million, respectively, while tech witnessed a second weekly outflow, worth about $755 million.
Source: REUTER
