(Reuters) – Global investors accumulated money market funds for a third straight week in the seven days to Jan. 10, while pulling back from equity funds, as they favoured safer bets ahead of key U.S. inflation data.
Global money market funds secured a net $57.04 billion worth of inflows during the week, according to LSEG data.
The U.S. 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, U.S. 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.
Global corporate bond funds received $5.73 billion in a third straight week of net buying. Investors also poured $1.25 billion and $1.02 billion, respectively into government and high-yield funds.
Among commodities, precious metal funds suffered about $813 million in net selling, the biggest weekly outflow since Oct. 25, 2023. Energy funds also witnessed around $321 million worth of net disposals.
Data covering 27,981 funds in the emerging markets showed that investors poured about $174 million in bond funds, staying net buyers for a third successive week. They also purchased about $37 million worth of EM equity funds.
(Reporting by Gaurav Dogra and Patturaja Murugaboopathy in Bengaluru; Editing by Varun H K)
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