Equity funds grow due to risk appetite

Global equity funds saw massive inflows as risk appetite returned and investors believed the Omicron variant will not cause a major setback to the world economy next year.

According to Refinitiv data, investors bought global equity funds for $ 33 billion in the week ending December 22, compared with an outflow of $ 13.1 billion in the previous week.

US equity funds attracted $ 27.5 billion, while Asian equity funds raised $ 1.8 billion. On the other hand, European equity funds posted an outflow of $ 1.5 billion.

Global stocks have made a strong recovery this week after their downtrend for the month, fueled by strong corporate earnings and reports that Moderna Inc’s Covid-19 vaccine provides protection against the Omicron variant.

Meanwhile, global bond funds received $ 5.499 million, after exits in the previous week.

Money market funds, meanwhile, posted a $ 3.2 billion outflow during the week, underscoring the positive pro-risk environment.

Among commodities funds, precious metals posted net sales of $ 578 million, their third consecutive weekly outing.

An analysis of 24,070 emerging market funds showed that bond funds experienced outflows of $ 89 million, while investors sold equity funds for $ 1.8 billion.


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