Global equity funds record fifth straight week of inflows

what happened

Global equity funds have now attracted money for five weeks running, with net inflows of $28.16 billion in the week through October 21 versus $19.88 billion the week before, according to LSEG Lipper data cited by Reuters. Lower yields helped: the 10-year US Treasury yield slipped about 15 basis points and fell below the 5% level, a threshold closely watched by investors. Early results also supported sentiment, with roughly 73% of the approximately 18% of MSCI ACWI constituents that have reported beating average analyst estimates.

Still, the MSCI World index dropped 1.31% on Thursday, after Meta posted solid numbers but announced plans to issue non-voting shares, renewing worries about its heavy spending on capacity. Asian equity funds took in $11.53 billion, their biggest weekly haul since at least December 2022. European funds received $9.14 billion and US funds $5.07 billion. Technology funds gained $5.05 billion after a $4.77 billion outflow the week before, while consumer discretionary funds lost $1.29 billion.

Bond funds were also in demand: global bond funds drew $9.44 billion, their fifth consecutive weekly inflow. Swiss franc bond funds attracted $6.8 billion, the largest since November 2024. Money market funds took in $15.86 billion after $47.51 billion of outflows the previous week. Gold and precious metals funds added $1.29 billion, their fifth purchase week in the last six. Emerging market equity funds received $6.28 billion, the largest weekly purchase since August 5.

why it matters

Steady inflows into equities and bonds suggest some capital is returning to risk as yields ease, but the rise in money market holdings and gold buying point to continued caution. Solid earnings support valuations, while Meta's share plans are a reminder of how much big tech is spending on infrastructure.

market impact

US and Asian equities, Treasuries, gold: fund inflows support demand for risk assets and fixed income

tags

instruments