Global equity funds attract sixth weekly inflow in a row

Global investors remained net buyers of equity funds for a sixth successive week through July 31, driven by expectations that the US Federal Reserve would signal a rate cut as early as September, which could reduce corporate borrowing costs, reports Reuters.
According to LSEG data, investors acquired global equity funds worth a net $5.19 billion during the week, after buying a net $11.55 billion in the prior seven days.
The US Federal Reserve held interest rates on Wednesday but Chair Jerome Powell said a cut could indeed come as soon as September if the US economy follows its expected path.
Meanwhile, global stocks were poised to close a volatile week in the red on Friday, as concerns over U.S. economic growth and disappointing tech earnings weighed on sentiment.
By region, Asian funds led with a net $4.05 billion of inflows, marking a ninth consecutive weekly gain, while US funds drew $2.14 billion. European funds, however, experienced net outflows of $240 million.
Investors sold $395 million worth of sectoral equity funds, extending net disposals into a second week. They offloaded communication services, consumer staples and consumer discretionary sector funds worth $681 million, $489 million and $405 million, respectively.
In fixed income, global bond funds remained popular for the 32nd week in a row with net purchases of $12.13 billion.