Global investors accumulated money market funds for a third straight week in the seven days to January 10, while pulling back from equity funds, as they favoured safer bets ahead of key US inflation data, reports Reuters.
Global money market funds secured a net $57.04 billion worth of inflows during the week, according to LSEG data.
The US consumer price index (CPI) data for December, released on Thursday, exceeded economists' expectations, casting doubt on early interest rate cuts by the Federal Reserve. The CPI rose 0.3% in December, after a 0.1% increase in November.
By region, European and Asian money market funds were particularly in demand, as they drew inflows worth $26.25 billion and $24.23 billion, respectively. Meanwhile, US funds received just $4.6 billion.
In the equities segment, global investors sold about $7.72 billion worth of funds, posting a second consecutive week of outflows.
By equity sectors, consumer discretionary funds faced outflows of $614 million, the biggest weekly net selling since Sept. 27, 2022. Healthcare, and metals & mining sectors drew $582 million and $556 million worth of inflows, respectively.
Simultaneously, global bond funds garnered $10.77 billion in net buying, a third weekly inflows in a row.
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