(Reuters) -U.S. equity funds saw outflows for a third straight week through June 4, as concerns lingered over uncertainty surrounding U.S. trade policies, while investors remained cautious ahead of a key jobs report due Friday. At the same time, European equity funds witnessed firm demand for an eighth successive week, influenced by a weaker inflation […]
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US equity funds see outflows on trade policy worries, Europe drew inflows ahead of ECB rate cut
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(Reuters) -U.S. equity funds saw outflows for a third straight week through June 4, as concerns lingered over uncertainty surrounding U.S. trade policies, while investors remained cautious ahead of a key jobs report due Friday.
At the same time, European equity funds witnessed firm demand for an eighth successive week, influenced by a weaker inflation print and expectations of a policy rate cut by the European Central Bank, which it delivered on Thursday.
According to LSEG Lipper data, investors withdrew a net $7.42 billion from U.S. equity funds during the week while scooping up approximately $2.72 billion worth of regional funds in Europe. Asian funds also witnessed a net $1.84 billion worth of purchases during the week.
Investors, meanwhile, bought $667 million worth of sectoral funds, extending net purchases into a second successive week.
The tech and industrial sectors received a significant $909 million and $878 million respectively in inflows, while the financials and healthcare sectors lost nearly $800 million each in outflows.
Global bond funds witnessed a net $16.17 billion worth of accumulations for a seventh successive weekly inflow.
Investors pumped a combined $4.66 billion into dollar denominated short- and medium-term bond funds, logging their biggest weekly net purchase since April 2024. High yield bond funds also saw a massive $2.93 billion worth of inflows.
Simultaneously, weekly inflows in money market funds surged to a five-month-high of $108.5 billion.
Gold and precious metals commodity funds were also popular as investors poured $1.69 billion-the highest in seven weeks- into these funds.
Among emerging markets, bond funds witnessed a sixth weekly net purchase, amounting $1.99 billion, while equity funds experienced about $191 million worth of net additions, data covering 29,720 funds showed.
(Reporting by Gaurav Dogra in Bengaluru; Editing by Toby Chopra)