LONDON (Reuters) – Inflows into global equity funds hit their highest level in 35 weeks in the week to Wednesday, according to data from Bank of America, as investor optimism brightened.
Investors poured $22.9 billion into equities, Bofa said, citing EPFR data, and $4.2 billion into bonds.
Bofa analysts said Wall Street beliefs – that the Federal Reserve always blinks, stocks always go up, and tech always leads stocks up – have been challenged but not vanquished.
The pick-up in flows followed data last week showed that U.S. inflation cooled more than expected in October, prompting a dramatic rally in global stocks and bonds.
Investors hope that slowing inflation will allow the Fed to slow down its aggressive interest rate hikes, which have punished the equity and fixed income markets this year.
(Reporting by Harry Robertson; Editing by Amanda Cooper)
