Global equity funds draw fifth weekly inflow on earnings hopes

FE Team | Published: July 27, 2024 00:08:11

Global equity funds witnessed fresh investments in the week through July 24 despite a selloff in leading technology stocks as investors remained optimistic about a still-strong second-quarter earnings season, and potential Fed rate cuts, reports Reuters.
According to LSEG data, investors snapped up global equity funds of a net $11.29 billion during the week, after about $26.15 billion worth of net purchases in the prior week.
Amid a slew of corporate earnings, second-quarter results for most U.S. firms including Coca-Cola, Spotify Technology and AT&T beat market estimates, although, megacap tech names - Tesla and Alphabet - reported lacklustre earnings.
Of the 201 S&P 500 companies that have reported earnings so far, 79 per cent beat consensus net income estimates, LSEG data showed.
The MSCI's global stock index has still dropped about 1.7 per cent so far this week amid a slump in global tech stocks.
By region, US equity funds drew $5.7 billion following $21.7 billion worth of net purchases in the previous week. Asian and European funds also saw $4.09 billion and $1.09 billion worth of inflows during the week.
Sectoral funds, however, witnessed $1.58 billion worth of outflows, with the technology sector experiencing $406 million worth of net selling. The financial sector still gained a net $818 million in inflows.
Global bond funds, meanwhile, received about $13.35 billion as investors extended net purchases into a 31st successive week.
By segment, corporate bond funds led the way as investors poured about $2.75 billion, marking an eighth weekly net purchase in a row. Loan participation, and government bond funds also gained $741 million and $338 million worth of inflows.
Investors, however, ditched money market funds of a net $52.48 billion, halting a three-weeks buying trend.
Among commodities, precious metals funds saw $932 million worth of net buying after about $1.03 billion worth of net purchases a week ago. Energy funds also had $42 million worth of inflows.
Data covering 29,558 emerging market funds showed bond funds drew a marginal $50 million in inflows after suffering $801 million worth of outflows in the previous week. Equity funds, meanwhile, saw $748 million worth of net selling.