Global equity fund inflows rise on European stock rally

Global equity funds continued to see robust inflows, with the majority directed to European equity funds, which hit record highs fueled by hopes for peace in Ukraine and a surge in the defense sector due to anticipated increases in military spending, reports Reuters.

Also, a US inflation report suggesting that the Federal Reserve's preferred measure of prices might be cooler than anticipated, bolstered stock prices and fund inflows during the week.

Investors ploughed a robust $13.35 billion into global equity funds during the week, significantly outweighing $5.32 billion worth of net purchases the previous week, LSEG Lipper data showed.

European equity funds received $8.55 billion, the highest since mid-December 2024, with the pan-European STOXX 600 index rising about 8.5 per cent so far this year.

Asian and US equity funds also saw net $2.41 billion and $1.59 billion worth of inflows, respectively.

Global bond funds attracted an eighth consecutive weekly inflow, totaling $17.91 billion.