Published : 1 week ago, on 29/11/2024

(Reuters) – Global investors stepped up purchases in equity funds in the week ended Nov. 27, encouraged by prospects of robust U.S. growth under the Trump administration and boosted by cooling treasury yields.

Investors pumped a substantial $12.19 billion into global equity funds, a jump of 32% compared with about $9.24 billion worth of net acquisitions in the week before, LSEG Lipper data showed. It marked the ninth consecutive weekly inflow.

On Friday, global shares were on track for their best month since May, driven by optimism about strong U.S. growth and the artificial intelligence investment boom, despite concerns over political turmoil and economic slowdown in Europe.

Last week, U.S. President-elect Donald Trump’s appointment of fiscal hawk Scott Bessent as U.S. Treasury Secretary raised market expectations of controlled debt levels in his second term, leading to a drop in Treasury yields.

Investors picked a significant $12.78 billion worth of U.S. equity funds, extending net purchases into a fourth successive week. However, they withdrew $1.17 billion and $267 million out of Asian and European funds, respectively.

The financial sector witnessed robust demand as it drew $2.65 billion in net purchases, the fifth weekly inflow in a row. Investors also snapped up consumer discretionary, tech and industrials sector funds totaling a hefty $1.01 billion, $807 million and $778 million, respectively.

Global bond funds witnessed inflows for the 49th successive week. Investors poured $8.82 billion into these funds.

Corporate bond funds received a net $2.16 billion, the biggest weekly inflow in four weeks. Government bond funds and loan participation funds also witnessed notable purchases, totaling a net $1.9 billion and $1.34 billion, respectively.

At the same time, investors ditched $12.87 billion worth of money market funds in a second straight week of net sales.

The gold and precious metals funds gained a net $538 million, marking a 14th weekly inflow in 16 weeks.

Data covering 29,635 emerging market funds indicated that equity funds were out of favour for a fifth consecutive week with about $4.3 billion in net sales. Investors also divested bond funds to the tune of 2.58 billion, logging a sixth weekly net sales.

(Reporting by Gaurav Dogra and Patturaja Murugaboopathy in Bengaluru; Editing by Gareth Jones)