Global equity funds see massive inflows

Global equity funds attracted massive investments in the week to October 29 ahead of an anticipated interest rate cut by the US Federal Reserve and a trade deal between US President Donald Trump and Chinese President Xi Jinping, reports Reuters.

Investors accumulated a net $10.58 billion worth of global equity funds, extending their recent run of inflows into a sixth straight week, data from LSEG Lipper showed.

The Fed reduced interest rates by 25 basis points on Wednesday, thanks to easing inflationary pressure. The Fed Chair Jerome Powell, however, pushed back against another rate cut in December due to a lack of federal government data.

Trump on Thursday said he had agreed to reduce tariffs on Chinese imports in exchange for Beijing cracking down on the illicit fentanyl trade, resuming U.S. soybean purchases and keeping rare earth exports flowing.

Asian equity funds witnessed the sharpest weekly inflow since January 2024 to the tune of $7.19 billion, with roughly $5.46 billion flowing into Japan.

US and European funds also secured $1.81 billion and $137 million inflows, respectively. Sectoral funds had a mixed set of investments as tech and utilities saw inflows of $2.54 billion and $504 million, while investors ditched gold and precious metals equity funds of $1.51 billion.