(Reuters) – Global equity funds received inflows for a second straight week in the week to Aug. 17, as investors tempered their expectations for the peak of the U.S. interest rate hike cycle, with a fall in commodity prices pointing to cooling price pressures.
According to Refinitiv Lipper, global equity funds attracted a net $3.22 billion worth of purchases, a 19% increase in inflows over the previous week.
Graphic: Fund flows: Global equities bonds and money market https://fingfx.thomsonreuters.com/gfx/mkt/myvmneylopr/Fund%20flows-%20Global%20equities%20bonds%20and%20money%20market.jpg
Data showed during the reported week that U.S. producer prices declined last month, while another report showed import prices dipped for the first time in seven months in July, which indicated U.S. inflation was finally coming off the boil.
Stronger-than-expected results from Walmart and Home Depot also bolstered views on the health of consumers.
Investors purchased U.S. equity funds worth $6.85 billion, but European and Asian funds suffered outflows of $3.53 billion and $230 million respectively.
Among sector funds, tech, financials, and consumer staples gained $1.29 billion, $931 million and $501 million, respectively in inflows.
Graphic: Fund flows: Global equity sector funds https://fingfx.thomsonreuters.com/gfx/mkt/gkvlgokyxpb/Fund%20flows-%20Global%20equity%20sector%20funds.jpg
Meanwhile, purchases in bond funds continued for a third straight week, with investors pouring in a net $2.15 billion.
High yield bond funds attracted $1.78 billion, marking a fourth weekly inflow, while short- and medium-term funds brought in $663 million. Meanwhile, government funds had outflows of $1.2 billion after two weeks of inflows.
Graphic: Global bond fund flows in the week ended Aug 17 https://fingfx.thomsonreuters.com/gfx/mkt/zdvxozgbxpx/Global%20bond%20fund%20flows%20in%20the%20week%20ended%20Aug%2017.jpg
Investors exited $7.46 billion worth of money market funds in a second straight week of outflows.
Data for commodities funds showed precious metal funds had a eighth week of outflows, with withdrawals of $454 million, while energy funds saw $135 million in net selling, after a week of purchases.
An analysis of 24,426 emerging market funds showed bond funds received $986 million in a third straight week of inflows, although equity funds suffered outflows worth $857 million.
Graphic: Fund flows: EM equities and bonds https://fingfx.thomsonreuters.com/gfx/mkt/movangoalpa/Fund%20flows-%20EM%20equities%20and%20bonds.jpg
(Reporting by Gaurav Dogra and Patturaja Murugaboopathy in Bengaluru; Editing by Mark Potter)