(Reuters) – Investors around the world invested heavily in money market funds in the week ending Oct. 9, as hopes for U.S. Federal Reserve interest rate cuts dwindled and concerns over conflict in the Middle East. Ta.
Investors also moved money into liquid money market funds as they awaited a long-awaited update on the Chinese government’s stimulus package this weekend.
Global money market funds received net inflows worth $24.55 billion this week, after recording net purchases of about $22.78 billion the previous week, according to LSEG data.
Investors last week recalibrated their views on future Fed rate cuts after last month’s better-than-expected U.S. non-farm jobs report, boosting demand for lower-risk assets.
Asian money market funds saw significant inflows of $12.88 billion, the highest since January 10. European and US funds were also net buyers worth $7.78 billion and $2.54 billion, respectively.
However, demand for riskier equity funds cooled as investors bought just $3.65 billion in global equity funds, compared with net acquisitions of $35.97 billion in the previous week.
Funds in the tech, financial, and metals and mining sectors generated notable income of $572 million, $417 million, and $148 million, respectively, while the healthcare sector generated a net gain worth $520 million. Incurred sales.
Overseas Chinese stock funds attracted a massive $8.52 billion, the biggest weekly increase since at least December 2020.
Global bond funds attracted investment for the 42nd straight week, with investors pouring $12.43 billion into these funds.
Investors bought up $2.16 billion in short-term bond funds, following a $3.3 billion net selloff a week earlier. Meanwhile, government funds, high yield funds, and loan participation funds had net purchases worth $1.96 billion, $906 million, and $737 million, respectively.
Gold and other precious metals funds remained attractive for the ninth straight week, with about $780 million in inflows. However, the energy fund saw an outflow of only $11 million.
Equity funds attracted a whopping $8.55 billion, the most since January 2021, according to data covering 29,545 emerging market funds. Investors also bought $1.76 billion in bond funds.
(Reporting by Gaurav Dogra; Editing by Mrigank Dhaniwala)
