Global stocks and bond funds record outflows for eighth consecutive week


Oct 14 (Reuters) – Global equity and bond funds faced outflows for the eighth consecutive time in the week ended Oct. 12, data from Refinitiv Lipper showed, weighed down by concerns into a recession as global interest rates rose further.

According to the data, investors dumped $7.3 billion from global equity funds and $14.27 billion from bond funds.

Equity outflows were concentrated in European equity funds, which recorded net sales worth $7 billion, while US equity funds recorded outflows of $2 billion. In contrast, Asian stocks received a small inflow of $410 million during the week.

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Global outflows

Among bond funds, European funds again led the way with outflows worth $8.8 billion, while US bond funds recorded outflows of $4.9 billion.

Bonds around the world were swept by the rout in British government bonds, known as gilts, pushing yields on US Treasuries higher on fears that British pension funds could be forced to sell their fire assets.

The yield on 10-year Treasuries soared to 4.08% this week, the highest in 14 years, as rising inflation prices raised fears that the Federal Reserve’s continued efforts to tame inflation could trigger a recession.

The International Monetary Fund this week warned against a disorderly revaluation of markets, saying risks to global financial stability have increased, increasing the risks of contagion and the spread of tensions between markets.

Meanwhile, global investors put their money into safer assets, with money market funds and US government bond funds attracting about $4.7 billion each during the week.

Emerging Markets (EM) bonds and equities faced outflows worth $2.6 billion and $1 billion, respectively, based on analysis of 24,465 funds from the markets emerging.

EM stream

Among commodities funds, precious metals funds saw a small inflow of $83.2 million, while energy and industrial metals funds saw outflows.

Sector flows

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Reporting by Patturaja Murugaboopathy; Editing by Maju Samuel

Our standards: The Thomson Reuters Trust Principles.


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