International fairness funds recorded internet outflows for the primary time in six weeks within the week to July 21 as considerations over a resurgence of coronavirus circumstances worldwide prompted traders to maneuver in direction of safer property.
In line with Refinitiv Lipper information, international fairness funds noticed internet outflows of $5.9 billion within the week, led by a $10.4 billion outflow from U.S. fairness funds. Asian and European fairness funds, nevertheless, noticed internet inflows of $2.8 billion and $0.6 billion respectively. OCBC analysts mentioned in a be aware {that a} resurgence of COVID-19 circumstances attributable to the Delta variant of the coronavirus had doubtless soured market sentiment, together with renewed lockdown measures. “The softer danger sentiment doubtless prompted traders to pivot away from equities to the much less unstable bond market,” they mentioned.
Amongst fairness sector funds, cyclical sectors akin to financials and industrials witnessed internet outflows price $2.6 billion and $1.4 billion respectively. Tech sector funds drew a internet influx of $2.3 billion, the largest in additional than 4 months.
Traders in search of lower-risk piled $3.8 billion into authorities bond funds, essentially the most because the week ended February 3.
Riskier high-yield bond funds, nevertheless, confronted outflows price $2 billion.
International cash market funds recorded a internet influx of $5.5 billion within the week, after going through a mixed outflow of $148.5 billion within the earlier 5 weeks.
Amongst commodity funds, vitality sector funds noticed marginal inflows, in distinction to treasured metallic funds.
An evaluation of 23,669 rising market funds confirmed bond funds obtained a internet $954 million, and fairness funds $318 million.
Supply: Reuters (Reporting by Gaurav Dogra and Patturaja Murugaboopathy in Bengaluru; Enhancing by Kirsten Donovan)