Investments in global equity funds shrank in the week to January 21 as US President Donald Trump's threats of reigniting a trade dispute with Europe over Greenland curbed investor appetite, reports Reuters.
According to LSEG data, investors bought global equity funds worth a net $9.19 billion during the week - a marked decline from the previous week's $45.57 billion net purchases.
Trump, however, stepped back from his tariff threats against eight European countries on Wednesday and ruled out seizing Greenland by force.
US equity funds shrank by $5.26 billion as outflows partly reversed an inflow of $28.17 billion, received in the previous week.
Investors, meanwhile, purchased European and Asian equity funds of $10.22 billion and $3.89 billion, respectively in the most recent week.
"Strategically, we believe diversification across regions and asset classes is all the more important in a polarised world, where risks are higher and outcomes less predictable," said Mark Haefele, chief investment officer at UBS Global Wealth Management. At an early stage of the fourth-quarter earnings season, LSEG data shows that global large- and mid-cap companies are expected to report earnings growth of 16.44% for the last quarter. Among equity sectors, the financials and metals and mining sector funds were notable for inflows of $2.36 billion and $2 billion, respectively.
Global equity fund inflows slow on geopolitical uncertainties
FE Team | Published: January 23, 2026 22:40:44
Global equity fund inflows slow on geopolitical uncertainties
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