Investors Flock to Global Equity Funds as Inflation Cools and US-China Tensions Ease

In the week leading up to August 15, 2025, global equity funds witnessed a significant surge in investments, marking their largest weekly inflows in six weeks. This turnaround was driven by two key factors: a softer-than-expected US inflation print and an extension of the tariff truce between the United States and China, both of which boosted investor sentiment.

The technology sector was a particular draw for investors, with Apple Inc. pledging new US investments to avoid potential tariffs on iPhones. Overall, global equity funds saw a net inflow of $19.32 billion, reversing the previous week's net outflow of $7.63 billion.

Regionally, US equity funds led the charge, attracting a net $8.77 billion in investments, partially refilling the prior week's outflow of $13.89 billion. European and Asian funds also saw notable inflows of $7.08 billion and $2.07 billion, respectively.

Alongside the surge in equity investments, global bond funds remained popular for the 17th consecutive week, with a net $15.87 billion in new investments. Short-term bond funds, euro-denominated bond funds, and corporate bond funds all saw substantial inflows as well.

In the commodity space, gold and precious metals funds experienced strong demand, drawing in $2.63 billion, the largest weekly inflows in nearly two months. Energy segment funds also witnessed a net $120 million worth of purchases.

As the market landscape continues to evolve, investors are navigating the shifting dynamics with a mix of caution and optimism, seeking opportunities across various asset classes.