Global equity funds see robust weekly inflows

Global investors returned to equity funds in the seven days to June 5, powered by optimism that major central banks would cut interest rates as inflation moderated, while a drop in US bond yields also lifted risk sentiment, reports Reuters.

Investors pumped in a net $8.9 billion into global equity funds during the week, in contrast to about $4.4 billion worth of net withdrawals a week ago, data from LSEG showed.

This week, the European Central Bank and Bank of Canada cut their interest rates, boosting global stocks to record highs.

Investors are now waiting for the US Federal Reserve's meeting scheduled for next week for insights about the potential rate cuts this year.

Boosting investor sentiment, Treasury yields slid. The yield on benchmark US 10-year notes hit a two-month low of 4.275 per cent on Wednesday.

European equity funds saw $3.2 billion worth of net buying, marking the sixth weekly inflow in a row. Asian and US equity funds, meanwhile, witnessed about $3.09 billion and $2.29 billion worth of net purchases.