Global equity funds recorded their largest weekly inflow in five weeks, as investors positioned for a potential shift in U.S. monetary policy — despite ongoing concerns around elevated tech valuations and heavy AI-related spending.
In the week to December 10, investors added a net $12.9 billion to global equity funds, the highest since early November.
🔹 Regional & Sector Trends
- European equity funds led inflows with $6.4B, extending the prior week’s strong momentum.
- U.S. funds attracted $3.3B, while Asian funds saw $1.3B in net inflows.
- Sector funds drew $2.13B, the strongest weekly demand since mid-November, led by:
- Metals & mining: $889M
- Utilities: $824M
- Industrials: $405M
🔹 Fixed Income & Commodities
- Global bond funds extended their inflow streak to a 34th consecutive week, adding $8.23B.
- Short-term bond funds gained ~$2B for a sixth straight week.
- Euro-denominated bond funds attracted $1.9B.
- Gold & precious metals funds saw $1.9B in inflows for a fifth consecutive week.
🔹 Liquidity Shifts
After last week’s surge, money market funds saw $13B in outflows, signaling a partial rotation back into risk assets.
🔹 Emerging Markets
Equity funds in emerging markets recorded $2.78B in inflows, extending their buying streak to seven straight weeks, while EM bond funds added a modest $68M.