Global equity funds see outflows for an eighth straight week

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 Meanwhile, a net $3.35 billion was withdrawn from bond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)