Over the past week, investors lifted their buying in global equities. Inflows continued to focus among US equities while financials, European equities and Asian equities also recorded solid inflows. Flows into global bonds slipped but extended their inflow-run to 11 weeks. Inflows remain intact among investment grade corporate bonds and inflation-protected bonds. In contrast, investors took a breather in high yield bonds and continued to withdraw from government bonds. In commodities, the withdrawals among gold/precious metals were the first in six weeks. Lastly, investors parked $27 billion, a 9-week high, led by the US ahead of next week’s FOMC meeting into global money markets.
In the US, equities experienced another week of solid inflows. Investors maintained their focus within large caps, the financial and the IT sectors. In the US bond markets, there was a fairly unusual withdrawal among long-term investment grade corporate bonds. In Europe, investors raised their purchase of equities following a week of soft buying previously. The most recent $1.9 billion net injection extended current inflow streak to 13 weeks. UK, German and French equities have attracted more significant investors’ interest lately.
In Asia, equity inflows were seen via MF/ ETF and foreign investors. Notably the latter raised their buying in India sharply during a week that witnessed solid PMI data while awaiting the state Assembly results.