Global Equities Attract Inflows Amid Yield Dip

Global equity funds experienced a fourth consecutive week of inflows, drawing $20.01 billion in the week ending October 14. This surge in investment was largely fueled by a decrease in US Treasury yields from their highest levels in 2 k decades.

Investors also showed optimism regarding upcoming corporate earnings reports. Global large- and mid-cap companies are expected to report a 25.14% year-on-year earnings growth for the latest quarter.

Regionally, US equity funds saw a strong rebound with approximately $13 billion in purchases, reversing previous outflows. Asian and European equity funds also recorded weekly inflows.

Despite the overall positive trend, the technology sector experienced net outflows totaling $4.75 billion. Investors also withdrew from industrials and financials sectors.

Global bond funds also extended their inflow streak to four weeks, attracting $7.79 billion, with short-term and government bond funds seeing notable interest. Money market funds, however, recorded significant outflows of $46.73 billion.

Commodity funds saw investors end a buying streak in gold, with net sales of $1.14 billion. Emerging markets equity funds recorded their first weekly net purchases in six weeks, totaling $717 million.