Tech weakness sends weekly global equity fund inflows lower

Global equity fund inflows slowed sharply in the week to June 24, as concerns over debt-funded technology spending and a hawkish stance of the US Federal Reserve cooled risk appetite, reports Reuters.
Investors purchased a net $7.51 billion worth of global equity funds during the week, down about 86% from net buying of $55.53 billion in the previous week, according to LSEG Lipper data.
Sentiment was also pressured by persistent rate concerns, as Thursday's Commerce Department data showing May PCE inflation at 4.1%, its highest since April 2023, reinforced expectations of a possible 25-basis-point Fed hike later this year.
European and Asian equity funds drew inflows of $6.28 billion and $2.95 billion, respectively, during the week, down from $11.71 billion and $3.82 billion in the previous week. Meanwhile, U.S. funds recorded $3.53 billion in outflows.
Technology sector funds logged weekly net outflows of $17.83 billion, broadly reversing the previous week's $21.5 billion in inflows. Financial and industrial sector funds also recorded net sales of $750 million and $1.04 billion, respectively.
Investors, meanwhile, bought a net $10.85 billion worth of bond funds, extending their recent buying streak into a 12th straight week.
Global hard-currency bond funds, short-term bond funds and dollar-denominated medium-term bond funds attracted notable inflows of $3.1 ?billion, $2.42 billion and $1.87 billion, respectively.
Money market funds posted outflows of $42.8 billion during the week, the largest weekly withdrawal since April 15.