Spiking oil prices and a hawkish Federal Reserve rate hike sparked the largest weekly exit from global equity funds in nine months, according to LSEG Lipper data for the week ending September 16.
Key Data Highlights:
- Global Equity Outflows: Investors pulled a net $23.21 billion — the largest weekly exodus since December 2025.
- Regional Divergence: U.S. equity funds saw heavy outflows of $31.44 billion (4th straight week), and Europe lost $295 million, while Asian funds bucked the trend with $6.26 billion in net inflows.
- Sector Bright Spots: Equity sector funds drew $4.49 billion (6-week high), led by Tech (+$1.94B), Financials (+$1.31B), and Consumer Discretionary (+$621M).
- Bonds & Cash Shift: Government bond funds gained +$2.96B and short-term bonds added +$1.96B, while money market funds shed $77.42 billion.
- Commodities: Gold and precious metals attracted $1.17 billion (inflows in 9 of the last 10 weeks) as investors sought safe havens against rising inflation.
Surging energy costs linked to Middle East tensions continue to drive market volatility and capital reallocation! 📊💸
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