Global equity funds see outflows for an eighth straight week
Global equity funds posted net outflows for an eighth straight week in the seven days to Dec. 28 as a stronger than expected U.S. GDP reading raised worries that U.S. interest rates could stay…

Dec 30 (Reuters) - Global equity funds posted net
outflows for an eighth straight week in the seven days to Dec.
28 as a stronger than expected U.S. GDP reading raised worries
that U.S. interest rates could stay higher for longer. However, outflows were capped by a Commerce Department
report that showed U.S. consumer spending barely rose in
November, while inflation cooled further. According to Refinitiv Lipper data, investors withdrew a net
$529 million from global equity funds, although that was down
from $39.1 billion the previous week. U.S. equity funds recorded a net $5.41 billion worth of
outflows but Asian and European funds attracted a net $1.66
billion and $460 million respectively. Among equity sector funds, tech, financials and industrials
saw net selling of $835 million, $468 million and $192 million
respectively. Meanwhile, a net $3.35 billion was withdrawn from bond
funds, markedly lower than the $15.06 billion of outflows in the
previous week. Short- and mid-term bond funds experienced their 19th
straight week of outflows, at $1.59 billion, while high yield
bond funds lost a net $179 million. Investors purchased lower risk money market funds worth a
net $14.18 billion and parked $814 million in government bond
funds in a eighth straight week of net buying. Data for commodity funds showed precious metal funds
attracting a second straight week of inflows at a net $330
million, while energy funds recorded a net outflow of $247
million as selling continued from the previous week. According to data available for 24,668 emerging market (EM)
funds, both equity and bond funds saw net weekly outflows,
amounting $344 million and $97 million, respectively. (Reporting by Gaurav Dogra and Patturaja Murugaboopathy in
Bengaluru; Editing by Kirsten Donovan)