Global equity funds see first weekly inflows in seven weeks

Global equity funds see first weekly inflows in seven weeks

Global equity funds saw money inflows in the week to May 25 as some investors took heart from a rebound in markets this week, after sharp declines in stock markets in the previous seven weeks.

According to Refinitiv Lipper, investors bought a net $6.16 billion worth of global equity funds, marking their first weekly net buying since April 6.

The MSCI all country world index has gained over 3% this week, after slumping about 12.7% in the last seven weeks on worries that aggressive rate increases to tame inflation could send the global economy into a tailspin.

The big inflows into global equity funds were also due to the creation of new shares in the equity exchange-traded funds (ETF), Jefferies said in a note.

The data showed equity ETFs saw inflows worth $15.76 billion in the week, the highest in nine weeks.

U.S. and Asian equity funds had inflows of $4.61 billion and $1.22 billion, respectively, but European funds attracted just $0.13 billion.

Chinese equity funds obtained $0.58 billion, marking their first weekly net buying in seven weeks.

Data for sector funds showed industrials drew inflows of $713 million but financials and tech continued to face outflows, amounting $1.74 billion and $1.44 billion, respectively.

Meanwhile, investors sold a