Tariff haze cannot stop capital pouring into the stock market, with global stock funds attracting the highest weekly inflow in three months.

Despite facing the risk of escalating trade wars, global equity funds still saw massive net inflows in the week ending February 26, with a net inflow of $28.3 billion for the week, unexpectedly setting a record high for equity funds focused on stock markets since the week of December 25, 2024. It is worth noting that the overall flow of funds for LSEG global equity funds is for the week ending February 26, and therefore does not include the flow of funds during the periods of the tech stock market crash caused by Nvidia's over 8% drop on Thursday or the collective stock market crash in Asia on Friday. According to market analysts, weak economic data in Europe and the United States has strengthened market expectations for interest rate cuts by the European Central Bank and the Federal Reserve this year. Additionally, following DeepSeek's impact on Wall Street and Silicon Valley, funds have flowed towards the so-called "Top Ten Chinese Tech Giants," betting that they will be the biggest winners after AI large models are fully integrated into various industries in China. These two factors have become the main drivers behind the influx of global funds into the stock market under the shadow of Trump's tariffs. Total funds flow - Weekly fund flows in global equity, bond, and currency markets In the week ending February 26, equity funds in the US saw the highest net inflow of funds globally, with $19.71 billion, marking the largest single-week inflow in nine weeks. Equity funds in Europe and Asia saw net inflows of $4.33 billion and $3.25 billion respectively. However, the latest negative news is that global stock markets unexpectedly experienced a sharp decline this week, mainly due to U.S. President Trump's return to the White House without easing the trade battle with China, Canada, and Mexico as expected by the market. Trump announced on Thursday that starting next Tuesday, the U.S. government will impose a 25% tariff on goods from Mexico and Canada, and an additional 10% tariff on imports from China, intensifying concerns about a new round of global trade wars. Additionally, market concerns have risen as Trump failed to halt tariffs on major trading partners as expected, leading to worries about global "tit-for-tat tariffs" and the implementation of tariffs by the US government on steel, chips, and pharmaceutical products, as previously planned. Therefore, under the impact of Trump'