Global equity funds drew $49.2 billion in net inflows in the week through October 1, marking the strongest demand since November 2024. U.S. equity funds led the surge with $36.4 billion, the largest weekly net purchase in nearly 11 months, while European and Asian funds attracted $7.4 billion and $3.9 billion, respectively.
Sectoral flows were also significant, with $11.6 billion allocated to tech and financials, the strongest weekly inflows since at least January 2022. The inflows follow a weaker-than-expected U.S. private payroll report and an inline inflation reading, boosting expectations for Federal Reserve rate cuts.
Ned Davies Research upgraded global equities to overweight, raising stock allocation to 60% from 55% and reducing cash to 5% from 10%, citing seasonal strength, earnings momentum, and easing inflation pressures.
Other notable flows:
- Global bond funds: $6.1B weekly inflow (24th consecutive week)
- Money market funds: $8.8B inflow, first in three weeks
- Gold & precious metals: $4.7B inflow for sixth consecutive week
Investors remain selectively active in emerging markets, with equity funds seeing $239M outflows after 10 consecutive weeks of inflows, while emerging market bond funds drew $373M.