Money flowed into global equity funds by $2.2 billion, the highest in three weeks, before facing selling pressure at the end of the week.

Global equity funds inflow totaled $2.2 billion, the highest in three weeks, driven by strong earnings season and the AI ​​theme, before facing selling pressure towards the end of the week.

On August 21, 2569, at 16.24:3 PM, Reuters reported that global equity funds attracted the highest net investment in three weeks during the week ending August 19, as investors remained confident in the strong earnings season, even though markets began to face selling pressure towards the end of the week due to rising bond yields and oil prices.

Data from LSEG Lipper indicates that global equity funds saw net inflows of $2.201 billion that week, the largest since July 29.

However, this capital inflow data came before the sell-off at the end of the week, with global stock markets on track for their sharpest weekly decline since mid-July, as high government bond yields, rising oil prices, and renewed inflation concerns pressured stock values.

A key driver early in the week came from strong corporate earnings, with approximately 90% of companies in the MSCI World Index reporting their second-quarter results, and combined net profit up 39.7% year-on-year.

Investors are also closely watching the AI ​​theme after Anthropic signaled strong revenue growth, while the market awaits Nvidia's earnings next week to assess the outlook for AI infrastructure demand and data center revenue.

Broken down by region, U.S. equity funds attracted net inflows of $1.172 billion, the largest since late July, while European equity funds saw inflows of $4.70 billion and Asian equity funds inflows of $2.96 billion.

At the industry level, technology equity funds saw net inflows of $1.55 billion after the previous week's outflows, while gold and precious metals funds attracted approximately $536 million. However, financial equity funds experienced net outflows of $1.59 billion. On the bond market, investors continued to buy bond funds for the 20th consecutive week, with net inflows of $15.42 billion.

Of this, hard currency bond funds saw net inflows of $4.49 billion, the highest since July 8, while short-term bond and government bond funds saw inflows of $3.32 billion and $1.99 billion, respectively. Money market funds experienced net inflows of $3.71 billion, the lowest level in three weeks.

In commodities, gold and precious metals funds saw inflows of $2.04 billion for the sixth consecutive week, while energy funds experienced outflows of $146 million, following inflows of $434 million the previous week.

For emerging markets, data from over 28,000 funds shows that equity funds continued to see inflows for the sixth consecutive week, totaling $1.57 billion, while bond funds saw inflows of $493 million for the third consecutive week.

Overall, the market reflects a considerable amount of investor confidence in corporate earnings and the AI ​​theme. However, pressure from high yields, oil prices, and inflation began to clearly change the market sentiment towards the end of the week.

Reference: www.reuters.com

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