Global equity funds saw their first weekly outflow in 10 weeks, as fears over stretched tech valuations overshadowed optimism about a potential U.S. rate cut in December.
Key Highlights
- $4.48B net outflow from global equity funds (week to Nov 26).
- First weekly net selling since Sept 17.
- U.S. equity funds: –$4.56B
- Europe: –$1.21B
- Asia: +$170M inflows
Market sentiment weakened in November due to high tech valuations, increased volatility, and the impact of the record 43-day U.S. government shutdown.
DWS CIO Vincenzo Vedda warned:
“AI remains a market driver, but high valuations raise disappointment risk. Diversification and gold remain essential.”
Other Asset Flows
- Global bond funds: +$6.77B (22-week low)
- Euro bond funds: –$3.58B (first outflow since July 9)
- Short-term bond funds: +$5.56B (4th straight week)
- Money market funds: +$2.54B
- Gold & metals funds: +$1.66B (7th week of inflows)
Emerging Markets
- Equity funds: +$3.34B (largest since July 9)
- Bond funds: +$5.98M