European equity funds recorded sharp outflows on tariff fears; US funds withdraw the flow of entry
European equity funds are under the sale pressure this week until July 30 as a general meeting in the cooled regional stock, with investors more careful about the uncertain economic implications of the US -UE trade agreement and signs of weakening the company’s revenue.
However, the record rally on Wall Street attracts investors to US equity funds.
According to LSEG Lipper data, investors dismantled European funds worth $ 41.12 billion in their biggest weekly sales since at least 2018 but took US funds worth $ 6.34 billion to end the net sales trend of two weeks. They also added net $ 3.05 billion to Asian funds.
Some European capitals criticized the US-EU trade agreement achieved last weekend, saying the tariff of 15% on EU goods, up from the previous average of 1.47%, tilted to support the United States and offer a little support for the economic prospects of BLOC.
The Stoxx 600 SXXP index reached the lowest almost a month from 540.63 on Friday, while the S&P 500 SPX closed 0.37% lower in trading the previous day after recording the highest record of only 6427.02.
Global equity sectoral funds see the second weekly flow in respectively, amounting to $ 1.65 billion. The financial, technology and industrial sectors receive $ 1.09 billion, $ 931 million and $ 691 million, each while while health care witnesses weekly sales of $ 757 million.
Popular debt -oriented funds for the 15th week in a row with a net investment worth $ 15.35 billion in global bond funds.
Short -term bond funds see the large weekly inlet $ 3.38 billion after a net purchase of $ 4 billion in the previous week. Euro denominated bond funds and government bond funds also witnessed the net weekly purchases of $ 2.85 billion and $ 1.5 billion.
Investors, meanwhile, attracted $ 36.02 billion from money market funds in their biggest weekly sales since May 28.
In the commodity room, the demand for gold and precious metal funds is reduced to 10 weeks the lowest, with $ 285.8 million in net entrances.
The developing country sees optimistic demand, with investors to take equity funds worth $ 1.92 billion, the highest since July 2 and hijacked $ 1.31 billion to bond funds, data for 29,684 joint funds shown.
Source: Reuters
