Global equity funds attracted inflows for an 11th successive week through December 11, supported by signs that a cooling US labour market and stable consumer prices might facilitate a third consecutive rate cut by the Federal Reserve this month, reports Reuters.
Investors snapped up global equity funds worth a net $10.18 billion during the week, following about $21.19 billion worth of net purchases in the prior week, LSEG Lipper data showed.
Last week's US employment report showed a surge in job growth for November, rebounding from disruptions caused by hurricanes and strikes, but the unemployment rate increased to 4.2%, signaling a loosening labor market that could prompt the Federal Reserve to cut interest rates again this month.
US equity funds continued to attract investors for a sixth consecutive week, receiving net inflows of $6.36 billion. European funds gained $3.24 billion, but Asian funds experienced a net outflow of $278 million.
Sectoral funds faced their first weekly outflow in five weeks, totaling a net $1.94 billion. Notably, healthcare, technology and consumer discretionary sectors saw outflows of $1.08 billion, $654 million and $616 million, respectively.
Global bond funds marked their 51st consecutive week of net investments, attracting $10.19 billion.
Corporate bond funds led with a robust $3.21 billion - the highest weekly inflow since September 18 - while loan participation funds recorded their 12th consecutive weekly inflow, totaling $1.32 billion.
Last week, investors liquidated $16.29 billion from money market funds, following substantial purchases of $169.16 billion the previous week.
Meanwhile, foreign investors added a net $19.2 billion to their emerging market portfolio holdings in November, with selling of stocks more than offset by a continuing flow of cash into EM debt, data from a trade group showed on Friday.
Stock portfolios saw an $11.1 billion outflow while bonds attracted $30.4 billion last month, data from the Institute of International finance showed.
Chinese equities shed $5.8 billion while the country's bonds saw an outflow of $7.5 billion, underscoring investor concerns over geopolitical tensions including an opening of more fronts in the expected trade war with the incoming US administration.
All regions saw net inflows in November with Latin America leading the pack at $6.5 billion, while EM Europe attracted $4.8 billion, Asia $4.6 billion, and Africa and the Middle East $3.4 billion.
