Connect with us

Hi, what are you looking for?

DOGE0.070.84%SOL19.370.72%BNB287.900.44%USDC1.000.01%AVAX15.990.06%XLM0.080.37%
USDT1.000%XRP0.392.6%BCH121.000.75%DOT5.710.16%ADA0.320.37%LTC85.290.38%
THE BIZNOB – Global Business & Financial News – A Business Journal – Focus On Business Leaders, Technology – Enterpeneurship – Finance – Economy – Politics & LifestyleTHE BIZNOB – Global Business & Financial News – A Business Journal – Focus On Business Leaders, Technology – Enterpeneurship – Finance – Economy – Politics & Lifestyle

Business

Business

Uncertainty Over Rate Cut Timing Spurs Outflows in Global Equity Funds

Uncertainty Over Rate Cut Timing Spurs Outflows
Uncertainty Over Rate Cut Timing Spurs Outflows Uncertainty Over Rate Cut Timing Spurs Outflows
Uncertainty Over Rate Cut Timing Spurs Outflows
Uncertainty Over Rate Cut Timing Spurs Outflows Uncertainty Over Rate Cut Timing Spurs Outflows

Listen to the article now

During the week ending April 3, investors showed caution in global equity markets amid speculation about the Federal Reserve’s stance on interest rate cuts. Strong economic reports from the U.S. and robust labor demand prompted investors to reassess their expectations, leading to a net outflow of $2.08 billion from global equity funds, the first weekly decline since February 21.

The latest ISM report revealing growth in U.S. manufacturing in March, coupled with an increase in job openings in February, diminished expectations of imminent rate cuts by the Federal Reserve. Consequently, investors reduced their exposure to U.S. and European equity funds by $3.28 billion and $1.63 billion, respectively. However, Asian funds remained resilient, attracting approximately $2.02 billion in net purchases.

The healthcare sector endured its fourth consecutive week of net selling, witnessing outflows of around $1 billion. Similarly, consumer staples and utilities sectors experienced net outflows of $239 million and $225 million, respectively.

In contrast, global investors favored bond funds, with net purchases totaling $14.71 billion, marking the largest weekly acquisition in four weeks. Medium-term U.S. dollar bonds saw a notable surge in demand, securing approximately $4.55 billion, the highest weekly inflow since May 3, 2023. Corporate and government debt funds also recorded significant net purchases of $2.36 billion and $776 million, respectively.

Moreover, money market funds attracted substantial capital during the week, amounting to $104.32 billion in net inflows, the highest level since January 3.

In the commodities market, investors shifted their focus towards precious metals, with net purchases amounting to $663 million, reversing the trend from the previous week. Conversely, energy funds experienced net outflows of $52 million.

Data covering emerging markets revealed that bond funds accumulated approximately $1.42 billion in net purchases, the highest since early December 2023. However, equity funds faced an outflow of $851 million during the same period.

Overall, the cautious sentiment among investors reflected uncertainty surrounding the Federal Reserve’s monetary policy direction, prompting adjustments in asset allocations across global markets.


Comment Template

You May Also Like

Economy

Hooray! This past April has seen a big surge in the U.S. employment rate. According to the labor department there were an estimated 288,000...

Notice: The Biznob uses cookies to provide necessary website functionality, improve your experience and analyze our traffic. By using our website, you agree to our Privacy Policy and our Cookie Policy.

Ok