Risk aversion cools down, global equity funds see first net outflow in five weeks.

The latest data shows that as of the week ending on September 10th, global equity funds experienced the first net outflow of funds in nearly five weeks. This phenomenon is due to investors choosing to take profits and reduce their own risk exposure. Supported by market expectations of the Federal Reserve cutting interest rates three times this year, major global stock markets hit historic highs this week. However, political uncertainties in France and Japan, as well as escalating geopolitical tensions in the Middle East and Ukraine, are prompting investors to adopt a more cautious wait-and-see attitude. According to statistical data from Lipper, a subsidiary of LSEG, in the week of the first net sales since August 6th, global equity funds saw a net outflow of $3.06 billion. The outflow of funds mainly came from US equity funds with a net sell-off amount of $10.44 billion, the highest in five weeks. Europe and Asia funds recorded net inflows of $3.77 billion and $1.87 billion respectively. Sector funds saw a net inflow for the third consecutive week, attracting $5.04 billion in funds. Among them, technology, healthcare, and non-essential consumer goods funds attracted inflows of $3.59 billion, $0.709 billion, and $0.544 billion respectively. Global bond funds saw a net inflow of approximately $18.18 billion, maintaining a net inflow of funds for 21 consecutive weeks. Global short-term bond funds saw a net inflow of $3.47 billion, the highest since August 13th. High-yield bond funds and Euro-denominated bond funds saw inflows of $3.08 billion and $1.66 billion respectively. Seeking safe havens, investors allocated $60.79 billion to money market funds, the highest weekly amount since August 6th. Gold and precious metals commodity funds saw a net inflow of $1.67 billion, with 15 out of the past 16 weeks experiencing net inflows of funds. Emerging market equity funds saw a net inflow of $2.18 billion, reaching a nine-week high. Bond funds during the same period recorded a net inflow of $1.88 billion.