Market Bleeds As Global Equity Funds Withdraw

Reuters has reported that global equity funds experienced significant outflows in the seven days ending on September 20, amid concerns that the Federal Reserve might maintain its tighter monetary policy for a longer duration to combat inflation.

Regionally, US and European equity funds witnessed outflows of $6.64 billion and $130 million.

According to data from LSEG, investors withdrew a net total of $4.52 billion from global equity funds, marking the highest weekly outflow since August 23.

The US Federal Reserve held interest rates steady on Wednesday but signaled the possibility of an additional rate hike this year and fewer reductions in the following year.

Regionally, US and European equity funds witnessed outflows of $6.64 billion and $130 million, respectively, while Asian funds attracted $1.93 billion, marking the 16th consecutive week of inflows.

In terms of sectors, financials, and healthcare experienced outflows of $1.7 billion and $395 million, respectively, while the energy sector saw a significant influx of $334 million, the largest weekly inflow since September 2022.

Additionally, global bond funds recorded purchases amounting to $1.95 billion after experiencing approximately $330 million in outflows in the previous week.

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